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Author: 



Duff, Peter 



Title 



Duffs book-keeping, by 
single and double entry 

Place: 

New York 

Date: 

1871 



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MASTER NEGATIVE # 



COLUMBIA UNIVERSITY LIBRARIES 
PRESERVATION DIVISION 

BIBLIOGRAPHIC MICROFORM TARGET 



ORIGINAL MATERIAL AS FILMED - EXISTING BIBLIOGRAPHIC RECORD 



420 
D873 

WONTSOMEUr 



Duff, Peter, 1802-1869. 

Duff's book-keeping, by single and double entry. Prac- 
tically illustrating merchants', manufacturers', private 
bankers', railroad, and national bank accounts ... By 
P. Duff ... 20th ed., enl. and rev. New York, Harper & 
brothers, 186&. 1871. 

i39a pr- illus. (forms) 25**". 
400 p. 

Pages 399-400 conaist of advertising material. 
1. Bookkeeping. 

/^ 6-33126 

Library of Congress HF5635.D86 



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DUFF'S 



BOOKKEEPING. 



BY 



^ino^lc anb double ®nirg» 



PRACTICALLY ILLUSTRATING 

MERCHANTS', MANUFACTURERS', PRIVATE B 
ROAD, AND NATIONAL BANK ACCOU 

INCLUDING ALL THE LATE IMPROVEMENTS I 




ERS', RAIL 



SCIENCE. 



^^atith: ^ ooiPiOTJS iisrnDEx:. 



By I>. duff. 

FORMERLY MERCHANT, 
FOUNDER ANT) PROPRIETOR OF DUFF's MERCANTILE COLLEGE, OF PITTSBURGH, PA. 



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Ii€t no man enter into business while ho ie.igqorar/t of the nio.nher ^f *-f^{,ul ttlng books. Never hit him imagine that any de- 
gree of natural ability will supply the deficiency, or preserve multiplicitv of affairs ^ron inextricable confusion.— Db. Jomrsoir. 



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TWENTIETH EDITION, ENLARGED AND REVISED. 



NEW YORK: 
HARPER & BROTHERS, PUBLISHERS. 

FRANKLIN SQUARE. 

1870. 



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DUFF'S BOOKKEEPING. 



Mcnl/^oi'^ery Library 
of Accountancy 

9 



Entered according to Act of Congress, in the year 1867, by 

P. DUFF, 

in the Clerk's Office of the District Court of the United States for the Western District of Pennsylvania. 



.,^ Blank books, ruled complete to match this work, manufactured by R. C. ROOT, ANTHONY & CO., Stationers and 
Account-Book Manufacturers, 21 Nassau Street, New York. These books are made of fine extra size-paper, with the author's 
directions to teachers printed upon each cover. 



STEREOTYPED BT MACKELLAR, SMITHS * JORDAN, 
PHIIJU>ELPHIA. 



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REMARKS UPON THE TWENTIETH EDITION. 

The early editions of this work were the result of nearly twenty years' accumulated 
experience in American and European commerce; and there is no undue assumption 
in asserting that it introduced improvements in Commercial Education previously un- 
known in schools. Experienced business men in all quarters promptly sanctioned these 
improvements ; and the Legislature of Pennsylvania recognized the public value of them, 
in promoting the ends and purposes of Commerce, by granting the author an Act of 
Incorporation, with perpetual Charter, for establishing one of the first Commercial Colleges 
in America. 

The- favorable reception and extensive sale of the former impressions, have induced 
the author to prepare a new, revised and enlarged edition, in which he has spared neither 
labor nor expense, having added nearly two hundred pages of new matter, including a 
full set of Joint Stock Bank Books, exemplifying all the changes required for conducting 
bank accounts under the new National Banking law, now adopted by nearly all American 
banks. He has also given all the most approved forms of modern Railroad accounts ; and, 
as no system of accounts has yet appeared for the use of Private Bankers, he has added a 
full set of books expressly adapted to their business. 

The work now includes all the improvements for assisting the teacher and perfecting 
the education of the Commercial Student, suggested by upwards of twenty-seven years' 
daily experience in instructing large classes in this branch of education. 

Referring to the testimonials appended to its pages, he feels confident that €lerks, 
Merchants, Bankers, and all persons who buy or sell, or have any thing to do with 
accounts, will find the study of this work contribute to their advancement. In this hope, 
it is again respectfully submitted to the public by 

The Author. 



DUFFS BOOK-KEEPING. 



INTRODUCTORY REMARKS UPON THE FIRST EDITION. 

To Merchants : — 

In announcing a new work to the public, it is obviously the writer's first duty 
to state to his readers wherein he offers improvements in the subject upon which he treats. 
The author's objects in adding to the publications upon this subject are briefly these : — 

First. To provide instructors with the means of imparting more perfect and practical 
instruction than can be given from any work now in use. 

Second. To introduce several new and important modern improvements, having for their 
object, the abbreviation of the process, and greater security against error. 

Third. To supply all classes of merchants, mechanics, &c., with a complete book of 
reference. Nearly all the works now in use being prepared almost exclusively for the use 
of the wholesale merchant, leaving the mechanic and retailer with no other assistance than 
such as they can draw from books prepared for another department of commerce — a fact 
which may account for the imperfect knowledge of book-keeping among certain classes 
of traders. - 

Among houses conducting the more extensive and complicated operations of commerce, 
irregularity in the management of their accounts is now becoming, perhaps, a rare occur- 
rence. The conductors of such establishments, no doubt, strongly impressed with the disas- 
trous consequences of any confusion in this department, take effectual means to guard against 
it, by informing themselves of the most accurate and most improved methods of manage- 
ment. But this is far from*being the case among the middle and smaller class of dealers 
and mechanics. The frequent failures among thein often disclose the most culpable igno- 
rance and negligence in the management of their accounts : and as the extensive dealers 
are, themselves, often among the severest sufferers by these events, they should consider it 
their duty to make proper inquiry into the business qualifications, as well as the solvency 
and integrity of those to whom they extend confi^dence. And they should use their influence 
to impress it strongly upon the minds of such persons, that the want of that knowledge, 
which is to be obtained alone from systematic accounts, must always more or less increase 
the hazard of ultimate miscarriage in business ; and that it is, therefore, the first and most 
obvious duty of every dealer and trader, small and great, to keep a precise and methodical 
account- of his transactions. If young merchants had one-tenth part of the author's expe- 
rience in winding up and adjusting deranged books of account, especially in partnership 
business, they would guard against confusion in their books with as much vigilance as thej 
do against fire or shipwreck. 

In some countries, this duty of the merchant is watched over by the government, and 
enforced by many anxious legislative provisions.* But with us it is left to be impressed 
solely by public opinion ; and by the dread of that reproach, loss of credit and loss of cha- 
racter, that must ever follow the detection of ignorance and irregularity in the manner of 
recording business transactions. 

* The French Code de Commerve L^ivcs a minute description of the sevieral books which every trade^mau 
* must keep. 



,11 

1. » 






•*. I 



DUFFS BOOK-KEEPING. 






TO TEACHERS. 



This work is divided into two parts ; the first part containing in a cheap and conve- 
nient fonn for teachers, a complete course of instruction and practice upon Single and Double 
Entry, embracing all that is necessary for the learner to understand thoroughly, before he 
attempts to write in business books. 

The SECOND PART is designed for the assistance of merchants and accountants in the 
counting-room. Both parts may be had bound together, or the first part in a separate volume 
when required. 

This work is, by its minuteness and simplicity of illustration, intended to assist the learner, 
and thereby to assist his teacher. No pains have been spared to bring down the principles 
of the science to the level of the humblest capacity. In perusing the work, persons unac- 
quainted with the labors of the class-room, will perhaps be struck with the repetition of re- 
ferences, back to the same rules and definitions ; but those who understand the art of direct- 
ing the progress of the human mind — experienced preceptors — know well how much success- 
ful and efficient instruction depends upon making those principles already acquired explain 
new difficulties. 

It has always been my opinion, that a course of school instruction in Book-keeping might 
be so framed, that the teacher would have little to do but to see that his pupils followed the 
directions laid down for their guidance, which should leave them no means of getting through 
the exercises without mastering the subject. And if teachers would strictly follow my direc- 
tions, in teaching from this work, I shall be satisfied to allow an impartial examination of 
their pupils to stand as a test of the merits of this attempt to effect that purpose. 

The teacher will of course instruct those persons only in Single Entry who purpose to 
keep their books in that way and who desire to learn the science no farther. Those who 
learn the science upon the Double Entry principle always understand Single Entry; it 
therefore requires no attention from the Double Entry student, except a perusal. The in- 
troductory set of the Double Entry course is only intended for those having no previous 
knowledge of the subject. Those who are partially acquainted with it, may commence with 
the rules and oral exercises on page 38. In this set they will obtain a full knowledge of all 
the principles of the science. 

To persons engaged in business, time is often a great consideration. To such persons you 
can give, from this treatise, a perfectly effective course of instruction by omitting all writing 
except the Journal and Ledger. Direct them to journalize the transactions from the printed 
Day Book. But all the other directions, in reference to the oral exercises upon the rules 
and the auxiliaries, oral journalizing, &c., must be strictly carried out to ensure thorough 
instruction. 

The two sets of books embraced in the second part, though diiTerent in form, comprehend 
no departure from the governing principle of the science, and will not, therefore, be difficult 
to acquire by those who are well versed in the principles of the science. But I would re- 
commend a course of exercise upon them, before attempting to put them in practice in 
business. 

In transcribing our Single Entry Day Book, or any of those books where our Ledger 
folios are inserted as post marks, the learner must be cautioned to leave the columns blank, 
to insert his own post marks. 

Farther directions for teaching will be found interspersed throughout the work, whenever 
they are deemed necessary to guide the instructor in his progress. 



New Yobk, Augtui, 1866. 



6 



SINGLE ENTRY 

BOOK-KEEPING, 

EXEMPLIFIED IN A PARTNERSHIP BUSINESS, CONCLUDING WITH 

AN ILLUSTRATION OF THE PARTNERSHIP SETTLEMENT 

AND DIVIDEND OF THE PROFITS. 

PRESENTING, ALSO, THE REQUISITE STEPS FOR TRANSFORMING THE SAME 

LEDGER INTO A DOUBLE-ENTRY ONE. 



PEELIMINARY REMARKS. 

It may perhaps be asked why Book-keeping by Single Entry is presented in a work 
containing the explanation of the science by Double Entry, since the acquirement of the 
latter must necessarily bring a knowledge of the former. This is perfectly true ; and I 
have embodied my views in reference to it, in my directions to the teacher, on the last page. 
Those who have the means, capacity, and inclination to learn the science upon the double 
entry principle, will not, therefore, do more than merely peruse this set, for I do not imagine 
that any person thoroughly versed in the double entry process will ever keep his books in 
any other way. But it is, at the same time, equally certain, that there is a large class of 
persons, both in town and country, such as farmers, mechanics, retailers, milliners, and 
other dealers, who, for various reasons, are not inclined to keep their accounts by double 
entry ; and, as every person who buys or sells any thing must keep accounts in some way, 
the author feels confident that the following illustration of this simple but useful form 
of accounts will prove serviceable and acceptable to this class of dealers. The managers 
and teachers of public schools will also find it worthy of their attention ; for, however limited 
a young man's education may be, a knowledge of Book-keeping, to this extent at least, 
should form a part of it. In this set will be found a practical illustration of a process not 
to be found in any other work that we have seen — transforming the Single Entry Ledger 
into a double entry one. All simple as this process may appear after it is explained, it will 
be found that many accountants are not aware that there is any way of changing the prin- 
ciple of keeping the books but by the laborious and tedious process of transferring all the 
accounts to a new Ledger, — an operation that is seldom necessary until the old Ledger is 
filled. 



GENERAL RULES FOR DEBITING AND CREDITING ACCOUNTS. 



1. Give the Rule for opening books 

in private business. 

2. Give the Rule for opening books 

in partnership business. 

3. When is a person Dr. ? 



4. When is a person Cr. ? 



5 What is the rule respecting 
orders, bills, drafts, &c. ? 

6. Which side of the Ledger is 
* used for the Drs. and Crs. ? 



1. I credit the stock account, which represents my own 

name, for what I invest in business, and if I owe 
any thing I debit it for the amount. 

2. I credit each partner for what he pays in, and debit 

him for what he draws out. 

3. When he gets into my debt, he is Dr. for the 

amount, and 
When I get out of his debt, he is Dr. for what I 
pay or cease to owe him. 

4. When I get into his debt, he is Cr. for the amount, and 
When he gets out of my debt, he is Cr. for what ho 

pays or ceases to owe me. 

5. Credit a person always when you draw on him on 

your own account, and debit him when he draws 
on you. 

6. The Drs. always on the left, and the Crs. always on 

the right. 

7 



M 









SINGLE ENTRY BOOK-KEEPING. 

NAMES, DESCRIPTION, AND USES OF THE BOOKS REQUIRED. 

The Day Book and Ledger are the only books generally used in this mode of keeping 
accounts. If Bill Books, or any other auxiliaries, should, in any case, be required, the form 
and directions for keeping them will be found in our Double Entry Set (p. 45). I would, 
however, recommend Single Entry Book-keepers to keep a Cash Book, and, in some cases, 
a Cash Sales Book. In order to make these books thoroughly understood, we subjoin an 
exemplification of each, in connection with each other, and with the following Day Book. 



SINGLE ENTRY BOOK-KEEPING. 



We begin with 



THE CASH SALES BOOK. 



In this book is recorded a detailed account of all sales for ready cash j also for cash 
received for sales entered upon the Day Book, and collected before posting to the Ledger — 
see third Day Book Entry, Sept. 10, p. 10. From this book the amount is transferred 
weekly to the Cash Book, or as much oftener as we wish to balance that book, at the same 
time noting the amount on this book — " Ent'd C. B., p. 00." This is more convenient than 
the common way of entering every sale upon the Cash Book, or entering them first upon a 
glate — a practice that can never be reqommended, as it is about the same trouble to write 
upon slate as upon paper, and all future reference to entries made in this way is forever 
prevented by rubbing them out. When the nature of the business renders it too difficult 
to keep a record of every sale, the usual course is to keep the money received for sales during 
the day in a drawer, separate from that entered in the Cash Book, and to count it out and 
enter it in one sum in the evening *' Rec'd for sales this day." 

The following illustration will sufficiently explain the nature and use of this book : — 

NEW YOBK, September 1st, 1866. 



1866. 

Sept. 



5 



8 

9 

11 
15 

16 

18 
20 



25 
27 
29 



Sold for Cash, viz. — 
1 Vest and 2 pr. Pants, 
4 yds. Fine Blk. Cloth, @ $6, 
1 Silk Hat, S5. Box, 25 cts.,* 
1 pr. fine Boots, S6. Silk Hat, $5, 
1 Mahogany Sofa, 

1 Dining Table, 850. 1 Toilet do., $10, 
1 Rosewood Piano, 
Music Stool, 



to R. Carpenter, 
J. Manly, 

J. Toole, 
do. 
F. Le Roy, 



Sold for Cash, — 

1 Saddle, 815. Bridle, 82, 
1 Gig Harness complete, 

1 Travelling Trunk, 

2 Leather Hat-boxes, 

1 Bbl. Flour, and cartage, 



Entered Cash Book, p. 1. 

R. Trotter, 
do. 



F. Howe, 
Ent'd Cash Book, p. 1. 



Mrs. Mason, 



Sold for Cash, — 

2 Braid Bonnets, 

1 Velvet Bonnet, 88. Ribbon and trimming, 84, 

Making 2 Silk Bonnets, 

Making a Mantilla, 84. 4 yds. Fringe for do., 84, Mrs. Hill, 

4 Lace Collars, @ 84, 

Ent'd Cash Book, p. 1. 
Sold for Cash. — 

1 Silver Watch, No. 4445, Samuel Gray, 

Repairing a Gold Repeater, G. W. Smith, ' 

Engraving 1 dozen Tablespoons, F. Robb, 

Ent'd Cash Book, p. 1. 



22 
24 

5 

11 

20 

60 

150 

5 



17 

14 

12 

3 

6 



12 

12 

5 

8 

16 



* When a sale is made to an unknown person, the name may bo left blank. 

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QO © 
rHQQ 



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S.F = 



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.2. .3 ■*• 

^^.■^* 

f 2 = 1 



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rS o - u 

• O t> _ 

■B W C • 

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r 



NEW YOBK, Monday, Ist September, 1866. 






P. Duff and William Gordon having this day entered into copart- 
nership under the firm of Duff & Gordon, they pay as capital 
as follows : — 
* P. Duff is credited for — 

Cash paid in per Cash Book .... 1100. 

James Wood owes him on account . . 200. 

'David Cutler owes him on his note . . • 150- 



II 



James Wood (Carpenter), Dr.* 

For the above balance due P. Duff 
_ // 

W. Gordon is Cr. 

For Cash paid in per Cash Book . . . . 
u Balance due him from K. Martin, 270 Bowery 
n Merchandise and Store fixtures per Inventory* 



900. 
95. 

890. 



1450 



200 



Paid, 
Sept. 15. 



Returned 
Sept. 22 



} 



Kobert Martin (270 Bowery), Dr. 

For the above Balance due W. Gordon . 

n • — 

William Gordon, Dr. 

For bal. due by him to Wm. Hay assumed by firm 
ti n » T. P. Cope & Sons, de. . __ 

_ ^ 

William Hay, Cr. 

For balance due him by W. Gordon as above 

_ If 

T. P. Cope & Sons, Cr. 

For the above balance due them by W. Gordon 

======= 10. ===== 

James Wood, Cr. 

For his bill of Carpenter work for repairing store 

_ n _— — 

James Wood, Dr. 

For amt. paid his order for Merchandise to John Toole 

— n 

Dr. 



250. 
265. 



1885 



95 



'Frederick Howe, 

For 1 barrel Fine Flour, (Cartage, 25 cts.) . ... 

• 20. =====- 

James Carter, Dr. 

For lib Tea. $1 ; 121b Sugar, $1 ; lib Kaisins, 25, $2 25 
«r 1 bag 160R) Rio Coffee . . . @ 10. J^ 



♦Robert Manly, 

For 1 best Silk Hat 



James Day, 

For Cash on account 



Dr. 

11 
Dr. 



1. Dnff is here credited for the reasons given in Rule 2. 

2. Cutler is not debited on book account for this sum, because we hold his note for it. 

3. We do not require to open an account with Howe for this entry, because it was paid be- 

fore posting. — See Cash Sales Book. 

4. If he had returned this after posting, we must then credit him for the amount, when 

returned, on the Day Book, and afterwards post as usual. 
* The form of an inventory can be seen on pages 59 and 61. 

10 



515 



250 



265 



105 



12 



18 



/ 
25 



25 



25 



September 30th, 1866. 



T. P. Cope & Sons, 
For bill remitted them 



Dr. 



2 



1 



William Hay, 

For amount of bill remitted him 



Dr. 



Robert Barclay, 

For 4 yds. Satin Ribbon, 
// 1 pr. Silk Gloves, 
// 16 yds. Fig'd Satin, 



= Oct. 5. 
Dr. 



@ 50 cts., S2 



.76 



@ 1 50, 24. 



^William Hay (to close acct.), Dr. 
For our order on James Wood . 

Cr. 



James Wood, 

For the above order 



Dr. 



James Wood, 

For 1 pr. Waterproof Boots, $6. 1 Silk Hat, $5, 

- 10. == 

* Robert Barclay, Dr. 

For Sundries .... 

- — If 

'James Carter, Dr. 

For 1 Fine Black Dress Coat . . . , 

// 1 full circle Cloak, velvet trimmed .- 
Received cash on account of the same . 
Balance to his debit 

20. === 



$28. 
45. 73. 

. 50. 



Jas. Wood (per order to J. Pine), Dr. 

For 1 barrel Fine Flour, ^g 59 

// 1 gal. Molasses, 50 cts. lib Tea, 75 cts. lib Pepper, 25 cts., \M 

Per bill : : 



P. Duff, 

For 1 Velvet Vest, 



— If __ 

Dr. 

1 Fine Black Dress Coat, $28, 

— # — 

Dr. 



W. Gordon, 

For 1 pr. Ladies' Boots, $2. 1 pair Men's do., $6.50 



James Carter, 

For his invoice of Flour, 



Robert Barclay, 

For his invoice of Cloths, &c. 



30. 

Cr. 

Cr. 

• 

w 
Dr. 



James Day, _ 

For a full suit of Clothes, $35. A f circle Cloak, $30 



11 



200 



200 



26 75 



50 



50 



11 



23 



8 



36 



8 50 



258 



150 



65 



1 

I 



November Ist, 1866. 




1 ; 1 Robert Martin (to close acct.), Cr. 
For his invoice of Silks . 
// cash in full . • • • 

5. 



67. 
28. 



2 



Robert Barclay, ^^• 

For 30 barrels Superfine^ lour 

T. P. Cope & Sons, ^^- 

For om note in full for balance of account . 



. @«6. 



// 



2 ^Robert Barclay (to close acct ), Cr. 

For his note for balance of his account in foil ^ 

= 10. =~ 



65 



81 75 






Robert Martin, o^ih. ^^" 

For 1 barrel of Sugar, 24m. ^^^^ ^^^^^ ^ ^^^^ ^^^ 

„ 2R, Sperm Candks" . • ___@m^^-^^^ 

. ■ — n 

' '• Jor'r rlti:; of Dry Goodstd Groceries . • *800- 

Less paid them on account cash • • ' . * j-. " 

^ Balance to their credit 

- 20. ===--========== 

sRobert Evans (Buffalo), Dr. % ^ «l«»i^« 



11 75 



500 






For 12 pair Waterproof Boots • 

„ 2-1 " " ^^^^^ ' 

I, 24 " Boys' Shoes 

// Packing Case and Cartage . 

— : It 

Dr. 



(g$8. 
6. 
1.25 



96. 
144. 
30. 
1.25 



271 [25 



. -r n ^ UT. (^3 months. 

2 James Carter, , ^i ,, vr i oqc 9A» 

Forlps.S.FineKackCloth,No.l288. ||^^„^,^ @,,. .^OO. 

"„ End » Green » 1320. 7 " 3. 21.^^ 

w Wrapper and Cartage . • • —^ZZ— 

^,,^,=,==JL============= 30. === 

Robert Martin, ^^' 



rrhrs account of Hosiery against WiUiamGordon 

Dr. 



* William Gordon, 

For amount assumed with R. Martin, as above, 



// 
Cr. 



^ ' •'X 3 months' wages from 1st Se^p't. to dat., as foreman, @^fmo. 



Dr. 



Mames Day, t^ n «, 

For Cash on account Forty-one Dollars 



James Day. 



2 



150 



41 



:|SKvs|SrS5r:HSSa'-":.-..-...~-. 

1^ 



December 1st, 1866. 



2 



James Day (to close acct.). 
For cash in full . 



Dr. 



40. 
21. 



19 



61 



. tt 

P. Duff, Dr. 

For a Winter Frock, $35. Hat, $5 
// Cash paid George Cutler's bill 

n _- " . 

P. Duff, Cr, 

For Cash Received for his bill on Gibson, Bright & Co., London . 988 

— 10. li 

T. p. Cope & Sons, Cr. i 

For their invoice of Broad Cloths and Silks .... 2000 

. . — -^ H 

William Hay, Cr. 



For his invoice of Prints, &c. 



- 15. 

James Wood, per Mrs. W. Dr. 
For 20 yards Figured Silk 
«/ 16 H English Prints 



800 



1.50 30. 
25 4. 



Cr. 



James Wood, 

For his bill of new door and window shutters . 

=-=========== : 20. ===== 

W. Gordon, Dr.. 

For 12 yards Fine Black Cloth .... 

-— ~— ■ a 

James Wood (to close acct.), Cr. 

For 8 yards Prints returned, $2. Cash in full, $71 . 



@$6. 



31. 

Dr. 



P. Duff, 

For Cash paid House Rent to date, $140. Taxes, $17.88 

// . 

William Gordon, Dr. 

For Cash paid House Rent to date, $100. Taxes, $4.13 . 



STATEMENT exhibiting our Profits and Dividends. 



P. Duff f. 1 

W. Gordon ........// 

Robert Martin u 

Wm. Hay 2 

T. P. Cope & Sons // 

James Carter // 

Robert Evans ....... // 

Cash 3 

Merchandise u 

Bills Receivable n 

Bills Payable ^ 



Surplus effects 
P. Duff's half gain to his credit . 



1 I W. Gordon's 



to his credit 



13 



Effects. 



Liabiliti«t. 



254 


88 


2438 


701 


88 


1885 


11 


76 


2 

800 
2500 


262 


60 


258 


271 


25 




3634 


75 




3368 


26 




81 


75 


65 



25 



8582 01 
7948 ; 25 



7948 26 



633 76 



34 



37 



72 



78 



157 



88 



104 13 



316 88 
316 i 88 



REMARKS UPON THE DAY BOOK. 

All onr transactions are generally first entered upon the Day Book; hence it is called » 
the book of original entries, and is always referred to when full particulars or explanations 
are called for. It is therefore obvious that all copying into it from slates or waste pieces ot 
paper ^is liable to destroy its testimony. If the nature of the business requires original 
entries to be made upon Time Registers or other memorandum books, these books ought 
always to be paged and the Day Book entry should show its reference to them. 

Pass-books are often useful between persons having very frequent transactions with each 
other : but we must caution the Accountant against placing any dependence upon another 
person's pass-book. His Day Book must record every transaction as if no such book 

existed 

Though the preposition To is correctly used in their Journal by Double Entry Book- 
keepers, yet in the Single Entry Day Book the expression is unmeaning and ungram- 
matical. I have therefore substituted For, as more correct and agreeable to the idiom ot 
our lancnia^e. As you post the entries from the Day Book to the Ledger, 'insert the page 
of the Ledger in the marginal column on the left of the page. This serves as a post mark, 
and shows how far your posting is completed. You must afterwards ^compare all the 
entries in the Ledger with those in the Day Book, check-marking them thus j/ with a 
pencil both on the Day Book and Ledger. No person can expect to keep his books per- 
fectly correct without this precaution. 

ON OPENING THE LEDGER. 

The following Ledger is ruled in the common form, and it is the most suitable for any 
kind of business. The page is divided by a perpendicular line making what is called a 
folio or if the paper be small it will be better to take two pages for a folio. The space 
intended for each person's Account is headed in large text hand with his naine, or, it it be 
a firm with its legal title. Every Account occupies both folios, the left or Dr. side repre- 
sentin'^ ^our Account against him, and the right or Cr. side «his Account agamst us. Ihe 
diff-erence represents Uhe Balance we owe him or which he owes us, as the case may be. 
The abbreviations Dr. and Cr. are « never required except at the head ot the page, in 
opening a business Ledger always index each Account before you head it, as an omission m 
the Index often causes much trouble and sometimes mistakes. In business the Index gene- 
rally has a page allotted to each letter of the alphabet. The following illustration will here 
be sullEicient to explain it. 



INDEX TO THE LEDGER. 



A. 

Barclay, Robert . 
Bills Receivable 
Bills Payable 
Balance Account 
Cope, T. P. & Sons 
Carter, James . 
Cash 

Duflf, P. . 
Day, James 



2. 
3. 
3. 
3. 
2. 
2. 
3. 
1. 
2. 



Evans, Robert . 
Gordon, William 
Hay, William . 
Martin, Robert 
Merchandise . 
Wood, James 



1. What is the Day Book called? , ^ • . .u t. u v» 

2. What objections are there to copying from a slate into the Day JSooKf 

3 What is to be done as you post the entries from the Day Book to the Ledger r 

4. ^Vhat is to be done after you have posted the Day Book into the Ledger? 

5. What does the left folio of an Account in the Ledger contain? 

6. What does the right one contain? 

7. What does the difference represent ? 

8 Whereare the abbreviations Dr. and Cr. reqnired? 

14 



2. 
1. 
2. 
1. 
3, 
13. 



Vr. 



P. 



1866. 

Oct. 
Deo. 



20 
1 

81 



For Coat and Vest 

// a Coat, $35. Hat, $5 

// Cash p'd, Cutler's bill 

n Taxes & Rent 254.88 

Balance fol. 



H 



4 
4 



36 
40 
21 

167 

2500 



2764 



88 



88 



What is to be done with this and the following account 

when closing the Ledger ? 
How are they then closed? 



DUFF. 



I860. , 

Sept. I 1 For Sundries paid as cap. 

Dec. 1 // Cash for bill on Lond. 

i31 // his ^ net profit 2438. 

^218112 




2754.88 
254.88 

9S0O. 




1. They remain open until the gain or loss is ascertained 

(see Day Book 3) and entered. 

2. They then close into balance like any other account. 



WILLIAM 



1866. 




Sept. 


1 For his debts assumed 


Oct. 


20 // 2 pr. Boots 


Nov. 


30 


// Martin's bill 


Dec. 


20 


II 12 yds. Cloth 




31 


// Cash p'd taxes & rent 

701.88 

Balance fol. 



616 

8 

2 

72 

104 

1500 



2201 



GORDON. 



50 
26 

13 



88 



ZZ. I 



What does the balance entry at this and the preceding ac- 
count represent, and when are they transferred to the 
balance account? 

How are these balances found? 

How are they disposed of in re-opening the books ? 



1866. 



iSept. 1 j For Sundries paid as cap. 



Deo. 31 



// his J net profit 



1885. 
701 



1 

4 



- 



1885 
316 88 



^^ 


^.-1183.12 
316.88 




^'^^ 


1500. 




saoi.88 

701.88 
1500. 


- 


2201 



1. They represent each partner's present net capital, and ar« 

the last transfers to the balance account. 

2. By taking the difference between the two sides of the a«> 

counts after they are credited for their share of the gam. 

3. These balances are carried to the respective partaen' 

credit. 



ROBERT 



1866. 

Sept. 



Not. 



1 For bal. due W. Gordon 



10 



Sugar, $11. Candles, 75 j 3 



7.75 
us 



(270 Bowery.) 



MARTIN. 




1. For what purpose is the line drawn across this account 
under the $95. 



1866. I j 
Nov. 1 For Sundries 



De|}. 

Dec. 



80 1 For acct. ag't W. Gordon 3 

ol Balance fol. ;; 



95 



2 |25 

) . 50 



11 76 



1. Because the payment on the 1st November squared tk« 
account. 



^ ^f«*il^?® balance $9.50 at the credit side, and what is 2. It is what' he owed us when balancing our books, and wiU 
^® <ioo« with It in the new account ? ,| , be carried to his debit in reK)penini them/ 



JAMES 



1866. 

Bept. 
Oct. 



1 1 For bal. due P. Duflf 
10 1 Paid order to Toole 

6jPair Boots, $6. Hat, $5 
20! Paid on order, J. Pine 



231. 

us. 

~~n. 



Nov. 1 Bal. due per acct. rend. 
Deo. 16 For Silk, $30. Print, 



Forward, fol. 3 



(Carpenter, 18 CUff.) 



WOOD. 



1. What is the meaning of the above balance entry of $76? 
3S. What is the meaning of the last footing of this account? 




1866. j 

Sept. 10 For bill of work ' 1 

Oct. 6 Our order favor W. Hay 2 

N'ov. I Bal. to debit in now acct. 



Deo. 



16 For bill of work 



Forward, fol. 



I o 
1 O 



105 

60 

7ii 



231 



8T 



37 I 



1. It was the balance due us on settlement. 

2. When an account fills up, always reserve a line at the 

bottom and foot both sides down upon the same line, 
noting them as above, " Forward."— See the Account 
continued, fol. 3- 



15 



WILLIAM 



HAY. 



Gr. 



1866. 
Sept. 
Oct. 



Dec. 



30 For Bill remitted 
6 H our order on Wood 



■] IJalanco 



1. Whv was this account footed on the 5th October? 

2. Why is the above $800 brought down to credit side? 




For Bal. due by Gordon 



For Invoice of Goods 



For Bal. bro't down 




250 



800 



800 



1. We balance this account on the 5th October for the rea- 
sons given in note 1, at R. Martin's account, last page. 

2. This is the way the account re-opens if continued on this 
page. 



T. P. 



(PMladelphia.) COPE & SONS. 



1866. 
Sept. 
Nov. 



Dec. 



For Bill remitted 
// our note in full 


2 
8 

n 
O 


200 
65 


1 
1 


1866. 

' Sept. 

1 

1 

Nov. 
Deo. 


1 

10 
10 


For Bal. due by Gordon 


1 

8 
4 


265 




• 


265 




265 




Culancc fol. 


2500 
2500 


For Bal. on Invoice 
If Invoice of Cloths 


500 
2000 

2500 
















1 



JAMES 



CARTER. 



1866. 
Sept. 
Oct. 

Nov. 



20 For Mdse. per Bill 
10 n Bal. on Bill 
20 // Invoice of Cloth 



262.50 

258. 

4.50 





■1 


1866. 


1 


1 


18 


25 


Oct. |30 


2 


28 




Dec. 




8 


221 
262 


25 
50 

— 









II Balance 



fol. 



3 



258 

4 



262 



50 
50 



ROBERT 



BARCLAY. 



im: 

Oet. 

Not. 



5 For Mdse. per Bill 
10 // Sundries 

6 // Mdse. per Bill 



26 
25 

180 



76 



"m 76 



1866. 

Oct. .30 1 For Invoice of Cloth 



Not. 



// his note in full 



160 
81 



^gr 



75 
75" 



ROBERT 



(Buffalo.) 



EVANS. 



1866.1 I 

Nov. 20 For Invoice of Shoes 



8 



271 25 



1866. 
Dec. 



•■>i 
•>I 



Balance 



fol. 3 



271 



26 



JAMES 



(Foreman.) 



DAY. 



T586" 

Sept 20 For Cash on account 

Oct. 30 Clothes, $35. Cloak, $30 

Not. 30 For Cash 

Dec. 1, # * 



25 
66 
41 
19 



THJ^ 



1898: 



Nov. 30 For 3 mos. wages to date 8 




16 



Br. 



JAMES 



WOOD. 



Cf. 



1866. 
Dec. 



Bro't forw'd, f. 1 



110 



110 



1866. 
Dec. 



Bro't forw'd, f. 1 
20 8 yds. Print ret'd,@ 25 4 
// Cash in full 



37 
2 

71 

110 



CASH 



ACCOUNT. 



4 ii 3634 75 



1866. 

Dec. j 31 i For am't on hand 



1. What is the use of this and the four following accounts in 

Smglo Entry Book-keeping? 

2. How do we find the amount of cash on hand? 



1866. 

Dec. t>i . Balance 



fol. 



1. This and the four following accoiuits are never opened m 

Single Entry Book-keeping until wo are closing the 
Ledger. 

2. The amount of cash in hand is found by counting it. 



MERCHANDISE 



1866. 



Deo. : 31 For am't on hand "^ Inv. 4 3363 25 



' For Bal. bro't down 33G3 25 

1. How is tJie amount of goods on hand ascertained ? 

2. What is to be done with the Cash Merchandise and Bill 

Accounts, if the books are to be hereafter kept by Single i 
Entry? r j a ^ 

3. What if they are to be kept by Double Entry? 



ACCOUNT. 


1866. 

Dec. 131 


Balance fol. 3 


3363 


25 


1 


i 






1. The Merchandise on hand is found by inventory. 

2. Tlie Cash Merchandise and the two following acconntf 

remain closed. 

3. The balances of these four accounts are all brought dowa 





BILLS 










RECEIVABLE. 




1866. 
Dec. 31 For notes on hand 


4 


81 76 

■-■ 


1866. 

Dec. 


31 


Balance fol. 


M 


i 
-1 ;' 75 


BILLS 




PAYABLE. 




1880i 

Dec. 


31 Balance fo' 

1 — 




1 ! 

(35 


1866. ! 

Dec. 31 

\ \ 


For our notes unpaid 


4 


66 


1 Who 


f f*r\r\a^l^n^Aa 4^\xr^ Al^4-:-^^.i.t^ i^.x _. 




.,. 



Single Entry Ledger? 
2. Why, then, are these accounts opened here ? 



1. The five last accounts belong to Double Entry books. N.. 

accounts are kept in Single Entry books but personal 
accounts. 

2. These accounts are opened here only for the purpose of 

recording the partners' settlement, and to illustrate th« 
manner of re-opening the Ledger by Double Entry.— 
See notes 1 and 2, p. 19. 



BALANCE 



ACCOUNT. 



1866. 

Dec. 



31 



Am't due by Martin f. 
// // Jas. Carter 
n II R. Evans 

Cash in hand 

Mdse. in hand 

Bills Receivable 7365. 



1 
2 

3 



9 

4 

271 

3634 

3363 

81 

7365 



50 
50 
25 
75 
25 
75 



1866. 



Dec. 31 Bal. due W. Hay 



1. What does the Dr. side of this account represent? 

2. How is the present net capital found? 

8. Where is the list of debts owing by the concern, and what 

do they amount to? 
4. What is the partners' present joint capital ? 
6. What portion of this $4000 belongs to each partner? 

6. How do we ascertain the amounts they have paid in and 

drawn out ? 

7. How do we ascertain if our operations are all correct ? 
» What IS the reason of this? 



// 
// 
// 
// 



T.P.Cope&Sons 
on our notes sass. 
P. Duff,netcap'l 
W. Gordon, do. 



2 

// 
3 
1 
// 



800 

2500 

66 

2500 

1500 

7365 



1. A complete inventory of all the effects of the firm. 
-'. By deducting what they owe from the amount of their 
property— see the small figures in the margin al»ove. 
The three first entries on the credit side, amounting to 
$3365. 

4. This leaves the present net joint capital ^00. 

5. That dei)ends upon the amounts which they have paid io 

and withdrawn. 

6. This can only be known by their accounts. 

7. If the operations are all correct, the balances due them or 
m*''*'*'^ accounts must, as above, exactly close this account. 

8. The balances due to other persons and the balances due 

the proprietor or proprietors of a concern must exactly 
use up all its effects, neither more nor less. 



B 



17 






SINGLE ENTRY BOOK-KEEPING. 



SINGLE ENTRY BOOK-KEEPING. 



\i 



CONCLUDING REMARKS UPON THE LEDGER. 

It may be necessary to state that the object for closing the Ledger *may be: Ist, To 
ascertain and record a division of the gain or loss between the partners; or, 2d, To prepare 
the books for a partner to come in ; or, 3d, To prepare for transferring the contents of the 
old Ledger to a new one ; or, 4th, For transforming the Single Entry Ledger into a Double 
Entry one, or transferring the Accounts to a new Double Entry Ledger. 

In closing the Ledger, every Account is made even by a Balance Entry at the lesser side, 
of the amount requisite to make it equal to the other side. These balance entries all repre- 
sent 'either effects or liabilities of the concern, and are all transferred as fast as the Ac- 
counts are closed, to the Balance Account "for the purpose of exhibiting the amount total 
of each, and thereby to ascertain what the concern is at present worth. There is no way 
of knowing this but by making up one list of every thing we possess and another list of 
every thing we owe. Now, this leads us to the most simple and rational explanation of the 
Balance Account ; for the Dr. side is simply this list of our effects and the credit side the 
list of our Liabilities. The Difference, if the Dr. side be the largest, *is what we are now 
worth. If the Cr. side be the largest, Hhe difference is what we are insolvent. 

The closing entries of the Ledger need not appear on the Day Book. They may all be 
made upon the face of the Ledger. They ought, however, both letters and figures, to be in 
red ink. All transfers from one folio to another on the Ledger should also be noted /oZ. or 
/olio* to distinguish the pages from those which refer to the Day Book. But the Ac- 
countant must avoid the practice of making any other entries upon the Ledger without an 
original entry with full particulars upon the Day Book. 

If an entry affecting a personal Account cannot be found upon the Day Book, its correct- 
ness may be questioned, and in case of litigation it is liable to be rejected altogether. — See 
Note 2, page 14, and Note 2, page 25. 

The statement at the foot of Day Book, p. 4, will always give the correct gain or lose, 
provided it includes all the effects and liabilities. The rule is — 

All debits are effects; all credits are liabilities. 

If the amount of effects exceeds that of the liabilities, the surplus is gain, passing to 
credit of the Stock account, or to the credit of the partners. If the liabilities exceed the 
effects, the deficiency is loss, and passes to the debit of Stock, or the partners' accounts if 
the business belongs to a firm. 



1. What are the objects for closing the Ledger? 

2. "What do all Balance Entries represent? 

3. What are they all transferred to the Balance Account for? 

4. If the Dr. side of the Balance Account be the largest, what does the difference between its Bides represent I 
6. What if the Cr. side be the largest? 

6. Why must the transfers on the face of the Ledger be noted folio? 



ID 



It has already been explained— see Cash Account, Note 1, and Merchandise Account 
ISote 2— that these and the other property accounts were not opened until we were closing 
the Ledger. They were then opened for the purpose of recording the different species of 
property the firm possessed when the dividend was made. If the books are re-opened by 
bmgle hntrj these accounts remain closed ; but if they re-open by Double Entry their 
balances as well as all the others are brought down. But whether the books are afterwards 
to be kept by Single or Double Entry, no dividend ought to be made between the partners 
without a record of all their effects and liabilities, and that record and Balance Account 
ought always to be in the Ledger, or in a book for the purpose, not on loose sheets of paper 
as IS the practice with many business people. As the Ledger now stands, if you desire td 
re-open it by Single Entry, you have only to bring^ all the balances of the personal accounts 
down as we have done with Hay's account^Ledger folio 2— leaving only the Cash Mer- 
chandise, and two Bill Accounts on folio 3 closed. If you desire to open the same accounts 
m a new Single Entry Ledger, leave them all closed upon the old Ledger, and transfer 
every account under date of the old Balance Account, to the new Ledger, entering " Balance 
from Ledger A (or B) folio"— giving the folio of the old Ledger. 

If you desire to re-open by Double Entry in the old Ledger, bring down« the balances of 
the Cash, Merchandise, and the two Bill Accounts, with all the balances of the personal 
accounts and your Ledger is open by Double Entry. A glance at the Balance Account 
proves this, tor there we see every debit and credit that we have brought down into new 
account, and they being equal in amount S7,365, our basis for a Double Entry Ledger is as 
complete as if it had been kept upon that principle from the beginning. 

If you wish to transfer the contents of the old Balance Account to a new Double Entry 
Ledger, it can be done direct from the Balance Account in the old Ledger to the respective 
accounts m the new Ledger, giving reference to the folio of each account in the old Led-er 
as above directed in transferring to the Single Entry Ledger. Those who prefer passfng 
the transaction through the Journal will make the following entry:— r r & 



Sundries, Dr. To Sundries, $7365. 



Robert Martin, bal. per Ledger A, folio 1, 



James Carter, do. ' do. 

Robert Evans, do. do. 

Cash in hand, do. do. 

Mdse. do. do. do. 

Bills Receivable in hand, do. 
To William Hay, for bal. due him 
// T. P. Cope & Sons, do. 
'/ Bills Payable, bal. due on our Notes, 3, 
// P. Duff, for his Net Capital, 1, 

" W. Gordon, do. 1 



2, 
2, 
3, 
3, 
3, 
2, 
2, 



$9.50 

4.50 

271.25 

3.634.75 

3,363.25 

81.75 



$800. 

2,500. 

65. 

2,500. 

1,500. 



When this entry is posted into the new Ledger, the transfer to it is completed The 
learner will not expect to understand what we have said here in reference to re-openin^ his 
Ledger by Double Entry until he has acquired a knowledge of that method in the next 
Chapter. He will then refer back to this matter, which could only be explained here in 
connection with the Single Entry Ledger. 

He will also refer to our directions for correcting errors in the next Chapter, p. 98. 



o" WK^®.^^^^^^' i8/eK)pened by Single Entry, what balances are to be brought down? 
A What balances do you bring down to re-open by Double Entry? 

19 






SINGLE ENTEY BOOK-KEEPING. 

EXERCISES IN MAKING OUT ACCOUNTS, INVOICES, &c. IN CONNECTION 

WITH THE PRECEDING SET. 



(1.) Form op an Account. — See J. Wood's Account, Ledger folio 1. 

Mr. James Wood, 

To Duff & Gordon. 



Dr. 



18«6 

Sept. 
Oct. 



1806. 

Sept. 
Oct. 



1 For bal. due P. Duff on old % 
10 // Paid your order in favor of John Toole 

5 // 1 pr. Boots, S6. Hat, 85 
20 n Paid your order in favor of J. Pine 



Crs. 



10 For your bill of carpenter work 

5 // our order on you in favor of Wm. Hay 

Bal. due Duff & Gordon 
j New York, 1st Nov. 1866. 



1105. 
50. 



200 

12 

11 

8 



231 

155 



76 



Note. — Accounts current are always drawn from the Ledger, referring by the 
the Day Book when particulars are wanted. See that the account and the Ledger 
alike, and as soon as Wood admits the correctness of the account, you must close 
count on the Ledger, as we have done, and bring the balance down, requesting him 
his books also conform to the settlement. Many persons keep their books in such a 
manner that they never show their settlements ) in consequence of which, they 
petually pestering their neighbors in business for statements of old settled accounts, 
tion to our directions in this matter will save trouble to both parties. 

r2.) Form of a Bill of Parcels. — See Day Book, p. 2. October 10. 

Mr. James Carter, 

BoT. OF Duff k Gordon. 



dates to 
balance 

his ac- 
to make 
slovenly 
are per- 

Atten- 



1 Fine Black Dress Coat . 

1 Full Circle Cloak, trimmed with velvet 

Received cash on account 

New York. 10th Oct. 1866. 



Balance due 



28 
45^ 

73 

50^ 

23 



(3.) Form of an Invoice. — See Day Book, p. 3. November 20. 

Mr. Robert Evans, 
(Terms, net cash in 4 months.) 



Bot. of Duff & Gordon. 



12 pair strong Waterproof Boots . 
24 n fine '/ 

24 ti Boys' Shoes 

Packing Case and Cartage . 

New York, Nov. 20, 1866. 



@88. 


96 ' 


@ 6. 


144 ! 


@ 1.25 


30 


• • 


1 j25 




271 25 

1 



Before forwarding this invoice, compare it carefully in every particular with your Day 

Book. 

20 



SINGLE ENTKY BOOK-KEEPING. 



MERCANTILE TERMS AND ABBREVIATIONS USED IN THIS WORK. 



Account current, a running account, em- 
bracing all transactions from one date 
to another. 

Account sales, an account of goods sold on 
consignment. 

Amt., for amount. 

Acct., for account. 

@, for at. 

Bal., for balance. 

Bbls., for barrels. 

B. B., for Bill Book. 
Bottomry Bond, a mortgage or lien upon a 

vessel 

C. B., for Cash Book. 



Co., for Company. 
C. S. B., for Commission Sales Book. 
Cr., for Credit. 

, Closing an account, to make it even. 
Closing lines, the lines which separate the 

old from the new account. 
Counter Entry, an entry made to balance one 

on the opposite side. 
Counter Error, an error balanced by another 

one on the opposite side. 
Counter Order, to recall an order. 
Dr., for Debtor. 
Do., or ditto, for the same. 
Dft., for draft. 
Ds., for days. 

Defalcation, deficit, diminishing or cutting ofi". 
Disct., discount, a sum or rate per cent, de- 
ducted from the principal amount. 
Doz., for dozen. 

Dishonored, when a note or bill remains un- 
accepted or unpaid. 
Del Credere, an Italian mercantile term sig- 
nifying guarantee. 
Days of grace the time allowed by law and 

custom to pay a note after it is due. 
Dividend, the profit to be divided. 
Drawer, the maker of a draft. 
Drawee, the person upon whom it is drawn. 
E. E., for errors excepted. 
E. and 0. E., for errors and omissions ex- 
cepted. 
Exch., for Exchange. 
Endorse, to write your name on the back. 
Full extend, to extend figures into the money 

columns. 
Footing an account, to add it up. 
Folios, the pages of the Ledger. 
Gal., for Gallon. 
Hhd., for Hogshead. 



I Honor a draft, to accept it. 
I. B., for Invoice Book. 
Inventory, a list of goods or debts. 
Insolvent, not having sufficient eflfects to pay 

one's debts. 
£, for pound sterling. 
Lighterage, a charge for conveying goods to 

a vessel in the harbor. 
Mos., for Months. 
Mdse., for Merchandise. 
Maturity, the day upon which a note or bill 

is payable. 
Mart, a place for public trade. 
N. A., a new account. 
N. P., net proceeds, the amount remaining 

after all charges are deducted. 
No., for number 
N. G., net gain, the gain remaining after all 

losses are deducted. 
N. C, net capital, the capital, clear of all 

debts. 
N. L., net loss, the loss above all gains. 
0. A., old account. 
Per Ct., for per cent., as 5 Per Ct. 
Ps., for pieces. 
P., for per or by. 
Prox., for proximo, next month. 
P. B. P., for Bill of Parcels. 
Pd., for paid. 
Prem., for premium, an advance upon the 

face of the Bill. 
Par, the face of the Bill. 
Protecting, accepting or taking up a Bill. 
Policy, the contract with an Insurance Office 
Protest, legal notice of the non-payment of a 
note or bill; which notice holds the 
endorsei-s liable for its payment. 
Rec'd, for Received. 
Renewal of a Note, extending its time upon 

a new Note. 
Re-consign, to send our employer's consign- 
ment to another market, for sale. 
Solvent, able to pay debts. 
Short extend, to extend figures to the left of 

the money columns. 
S. B., Sale Book. 
Stg., Sterling. 

Signature, a person's name in his own hand- 
writing. 
Sgt., sight. 

Ulto., ultimo, last month. 
Yds., yards. 



21 



DOUBLE ENTRY BOOK-KEEPING. 



SET I.— DOUBLE ENTRY BOOK-KEEPING. 



INTRODUCTORY SET. 



PRELIMINARY REMARKS. 

Having in the last Chapter explained Single Entry Books, we have now to treat of the 
science upon the Double Entry principle. We purpose to introduce it as if the learner 
had no previous knowledge of the subject. For such persons we have prepared the follow- 
ing Introductory Set. 

The purpose of this set is to explain the initial difficulties of the science. We have 
found by experience that it is difficult to make a pupil, who has no previous knowledge of 
the subject, understand the language of the Journal until he is made acquainted with the 
nature and disposition of the accounts in the Ledger. How, for instance, can we explain 
to a beginner the meaning of such expressions as " Cash to Sundries," or " Sundries to 
Cash," but by taking him to the Ledger and there explaining to him the Cash Account 
and the manner and object for keeping it ? Until he has the Ledger explained to him in 
some way, the language of the Journal must remain unintelligible to him : and to this may 
be ascribed the difficulty and ill success in teaching Book- keeping from some of the most 
popular treatises in use ; in which, after bewildering the pupil with Rules and Lectures 
upon Journalizing, they conclude with what ought to be first explained, — the Ledger. 

We here introduce our pupils at once to that book, by first defining its nature and use, 
and then by posting a few entries into it, sufficient to afford an explanation of the balance 
sheet. He then brings it to ar close and determines the gain or loss upon these trans- 
actions, — an operation that can hardly fail to awaken his interest and create a taste for the 
science. 

He next brings down the balances, and, after recording a few more entries, closes his 
Ledger as before, ascertains the increase or decrease of capital, and prepares for transfer- 
ring his balances to a new set of books. This already affords him a commanding view of 
the whole subject; particularly of that part of the process which is so seldom understood 
by young accountants, — viz. transferring the contents of old books to new ones. 

The light thrown upon the subsequent parts of the process, by this early acquaintance 
with the nature and purposes of the different accounts in the Ledger, will render the pupil's 
progress less difficult and perplexing and more effective. 

The teacher will not omit to require answers to all the questions given at the foot of each 
page, for the pupil's examination as he proceeds. 



22 



DEFINITION OF THE LEDGER. 

All the other books used in business may be considered as tributaries to this Book. 
Every transaction affecting our affairs must come to some accounts in the Ledger for final 
adjustment. It therefore follows that a distinct knowledge of the nature of the accounts in 
it and the manner of conducting them is indispensable to enable a person to record an entry 
intelligibly upon the other Books. 

In the infancy of commerce,^ the Ledger was the only book used ; and where the trans- 
actions are few, it still may be made to answer the same purpose, by making the entries on 
it at once, without the intervention of any other book. Thus, when a sum is to be entered, 
by the index you find the account headed, in a large distinct hand, with the name of the 
person with whom the transaction has occurred, and at the proper side we enter the date 
particulars, and amount. 

This book'' is generally kept in folios of two pages to a folio. Of late, however, each 
page is generally made to serve for a folio by a dividing line down the middle. On the left 
side of each folio are the date columns, and on the right those for the money. *One folio 
is allowed to each person's account, th^ left side being assigned to the debits,* which means 
your account against the person, and the right side receives the credits or the person's 
account against you. Thus, your account against him and his account against you are 
brought together under one head, yet arranged on opposite sides, in such a manner that, 
if once correctly placed, no doubt can afterwards arise as to what sums belong to his ac- 
count or to your account. When either party pays the other in full,*^ after the ^payment is 
entered, the account must be closed. •When the two sides of an account are found to be 
equal, place the sum at the foot of each and draw ink lines below them in such a way as to 
keep the figures distinctly separated from those of the transactions that may follow after the 
settlement, and which may be kept «nder the same head — see our Cash and Merchandise 
accounts in the Introductory Ledger, pages 33 and 34. 

In addition to persons' accounts, in Double Entry Books,' we also keep accounts of every 
kind of property we own and deal in. This is done under different heads precisely as we 
have just described in personal accounts;® making each property account Dr. for what we 
pay for it, that is what it gets in debt to us ; and Credit for what it brings us in ; that is 
what it pays us or gets out of our debt. In fact we may say that such accounts are per- 
sonified and are dealt with in all respects like persons. Thus, if you own a house, ship, or 
steamer, let each have an account in your Ledger. »This account is debited for the cost or 
value of the property,^® and credited for the freight or rent it has brought you in, and also 
for the proceeds of the sales if you have sold. Then an inspection of the account will 
show what we have made or lost by that piece of property. Thus, if the cost" (the Dr. side) 
be more than what it has brought us in (the Cr. side), then we have lost by it. But if the 
Credit side be the largest, then we have gained by it. In the same manner the gain or loss 

is determined upon the purchases and sales of Merchandise or any other property. See 

Merchandise Account, 1st Set. 



1. What was the first book used in CominerceT 2 How is the Ledger generally kept? 3. How many folios for each account 
and which side is used for the debit and w nch for the credit side? 4. What do yon mean by the debits and credits of m. ac- 
count? 5. W hen either party pays the other oflf, what is to be done with the account? 6. What do you mean bv closiue an 
f^'^^.",^* ! 1' ^J^^i'^V^^^ accounts besides personal accounts are kept in Double Entry Books? 8. How are property account* 
kept ? 9. To which side of the property account do you place its cost or value ? 10. What do you place to the credit side of a 
property account? 11. How do you determine what you have made or lost by a property account? 

23 



SET I.— DOUBLE ENTRY LEDGER AND DAY BOOK. 

The third class of accounts^ kept in Double Entry Books may be called Profit and Loss 
Accounts, as they receive no entries but gains and losses. ^They are kept for the purpose 
of recording all expenses and losses, and all gains. They may be kept all under one head — 
Profit and Loss; which is kept like all other accounts with a Dr. and Cr. side. "The 
Dr. side receives all entries of Expense and Loss, and the credit side all entries of gain. 
*But where the gains and losses are thus thrown together in one account, we deprive our- 
selves of the means of determining the gain or loss arising out of particular sources. But 
if we subdivide this account and open branches for Interest, Commissions, Expenses, &c., 
and debit each of these branches for all we lose upon it, and credit it for all we gain by it, 
it is obvious that each of these accounts will at any time present an important and interest- 
ing piece of information. And the longer we keep them, the more interesting and in- 
structive they become, as they can be made to present a tabular view of their respective 
results for comparison at diflferent periods of our business. 

Presuming that our attentive learner has now obtained some idea of the Ledger, we will 
next endeavor to explain the 

DAY BOOK. 

This book is by some called The Blotter, and it is not an inappropriate name for some 
people's Day Books. But for obvious reasons, scratching out, scoring or blotting entries 
upon this book ought to be avoided. If an entry be made wrong, it ought to be corrected, 
as we shall direct when speaking of the correction of errors, page 98, Note 11. 

This book is ruled in single pages, never in folios like the Ledger. There is a marginal 
column on the left and money columns on the right. — See our Day Book in the following 
Set, page 28. % 

This book becomes necessary as soon as the business transactions become so numerous as 
to render it inconvenient to turn to the proper account in the Ledger and to record them 
there separately. *0n the Day Book we enter them down one after another as they occur, 
like so many different memorandums. We reserve no spare space for each man's account 
here as we do in the Ledger. We have, however, to take care that every entry embraca«« 
the following particulars. « 1st, the date ; 2d, the person or account ; 3d, what you have 
bought or sold, paid or received ; 4th, the terms of payment ; 5th, the articles, quantities, 
prices, and amounts. By inspecting any of our Day Books it will be seen that entries for 
different persons' accounts are all intermixed upon the same page ; but are separated by ink 
lines in such a manner that there is no difficulty in distinguishing what belongs to each 
person^s entry. 

At our first leisure time we post the contents of the Day Book into the Ledger. 'Post- 
ing signifies the process of transferring each Day Book entry to the proper side of its proper 
account in the Ledger, in the same order of date as they occurred upon the Day Book. In 
order to show distinctly how far the posting has proceeded, when the post or transfer is 
made to the Ledger,* the entry is marked off or the Ledger page inserted in the margin of 
the Day Book, as we have done upon the first page of the following Day Book. 



Tm TEAcnKRS Examiwatioit.— 1. What is the third class of accounts called, and what kind of entries do they record? 
2. What 18 the purpose of keeping them? 3. What do we place to the debit and credit side of the Profit and Loss accounts' 
4. Yt hat objection is there to keeping all accounts of loss and gain under the Profit and Loss accounts ? 5. How are ontries 
made in the Day Book? 6. What particulars should every Day Book Entry embrace? 7. What is meant by postine? 8 How 
do we show upon the Day Book how far the posting has proceeded? 

24 




SET I.— DOUBLE ENTEY. 

When a Day Book is kept it is called the Book of original Entry, ^and will always be 
referred to in any case of doubt or dispute about the correctness of any entry upon the 
Ledger. It then becomes a matter of importance to have every entry made upon the Day 
Book^ in such a way as to explain itself, and also that every entry affecting other persons* 
accounts should originate' upon this book. The practice of making some entries originate 
upon the Ledger where a Day Book is kept, often leads to perplexing consequences. The 
original entry ought also to be made * by the clerk with whom the transaction occurred. 
The next Book requiring explanation is the 



JOURNAL. 

This Books becomes necessary as soon as the nature and extent of the business introduces 
many long and intricate entries upon the Day Book. When one Day Book entry affects a 
number of accounts in the Ledger, posting such entries direct from the Day Book becomes 
difficult and liable to error. 'The purpose of the Journal is to arrange all the transactions 
from the Day Book in such a manner that each Ledger title shall be affixed to its respective 
Debit or Credit, and thus render the posting into the Ledger less liable to omissions and 
errors. The transactions of a very extensive business may be stated upon the Day Book io 
the Journal form in such a manner as to be posted without difficulty and without the iuter- 
vention of a Journal. This, however, can only be done by those who have learned to keep 
the Journal; and a correct knowledge of the language and principles of this Book is an 
important and somewhat difficult part of the science of accounts to acquire. We embody 
our instruction for making the entries of this book in rules upon the next page, which are 
immediately afterwards put in practice in the introductory Day Book and Journal. We 
hope our attentive learner will now have but little difficulty in answering his teacher the 
following 



GENERAL QUESTIONS ON THE PRECEDINa LESSONS. 

Quest. 1. When a person buys of you on credit, to which side of his account in the 

Ledger do you place the amount? 

2. If you buy on credit, to which side of the perso^'s account do you plaee the 

amount? 

3. If you afterwards pay him this amount? 

4. How does the account then stand and what is to be done with it?— See Note 5 

p. 23. ' 

5. When you receive money, to which side of the Cash Account do you place it? 

6. When you pay money away ? . 

7. When you buy Merchandise, to which side of the account do you place the 

amount? 

8. When you sell Merchandise ? 

9. If you buy Houses, Ships, or Steamboats? 

10. If they bring you in freight or rent, or if you seU the whole or part of any of 

them ? r J 

11. If you lose money, pay rent, clerks' wages, or other expenses, to which side of 

the Profit and Loss Account do you place the amount? 
-.12. If you receive money for storage, or by renting part of your premises, to which 
side of the Profit and Loss Account do you place the amount ? 



•2 Hmr'';hm,M^a« ^ ^"^K^^?''-"^' ^j*** ^"^^^ *^ ^^^^y^ referred to in case of dispute about the correctness of the Ledc-er* 
fimra.Sr J V^u^ ^^ *^ K*y' "^^^^ "P°" "*« »*>' Book ? 3. Where should all entries affecting Spel^^'aWu^^ 



25 



SET I.— DOUBLE ENTRY. 



RULES FOR JOURNALIZING. 



The following rules must be committed to memory. For the convenience of the teacher 
we give them in the interrogative form. The learner will find it useful, in exercising him- 
self, to cover the answers. 



Quest. 1. What is the general rule for 
regulating the debits and 
credits in Double Entry 
Book-keeping? 

2. What is the rule for opening 
Books? 



3. When is a personal account 

debited ? 

4. When is a personal account 

credited ? 

6. What is the general rule for 
receiving and delivering 
property ? 

6. Repeat a more particular 
rule for debiting property 
accounts. 



7. When are property accounts 
always credited ? 



8. When is the Profit and Loss 

Account to be debited and 
credited ? 

9. What is a Bill Receivable? 
10. What is a Bill Payable ? 



Ans. 1. The Debits and Credits arising out of 
every transaction must, in amount, be 
equal. 



2. The Stock Account represents myself, 

and must therefore be debited for 
what I now owe and credited for what 
I now possess.* 

3. When he gets into my debt, or I get out 

of his debt, he is Dr. for the amount. 

4. When I get into his debt, or he gets out 

of my debt, he is Cr. for the amount. 

5. The thing received is Dr. to the thing 

delivered.f 

6. When property becomes mine, it is Dr. 

for its cost or value ; and when it costs 
me any thing afterwards, it is Dr. for 
that cost. 

7. When property brings me in any thing. 

it is credited for the amount, and 
when it ceases to be mine it is cred- 
ited for its value or what I receive 
for it. 

8. Always debit loss and credit gain. 



9. Any obligation on paper which 1 hold 
against others. 

10. The same description of obligations held 
by others against me. 



• The term Stock is nnWersally used by Accountants for this purpose; but it is rather an ill-chosen title, as young Book- 
keepers are apt to confound it with the Merchandise Account. The term Capital or some other title that would better 
express the nature of the account would be more appropriate. The author has not, however, thought proper to change 
the title of the account, it being his object to introduce all his improvements by conflicting as little as possible with esta- 
blished usages. 

+ Or, the receiving account Dr. to the imparting account. 

2Ki 



I 

. V 



SET I.— DOUBLE ENTKY. ' 



THE DAY BOOK AND JOURNAL. 



INTRODUCTORY REMARKS. 

1. These two Books are here bound together. This is done, both here and with the 

principal set, for the mutual convenience of the learner and the teacher; but thev 
bound Tearltd^* ^°^'' ^''^ ""^^^"^ ^^^^ "'' '"^ business. There they are always 

DIRECTIONS TO TEACHERS AND LEARNERS. • 

2. After committing to memory the preceding Rules for Journalizing you will transcribe 

into your Day Book the first page of the one following. Then study the Journal 
entries applying the preceding rules for that purpose, and refer from each entry in the 
Journal to its final disposition m the Ledger. Endeavor to understand the nature of 
aU the Accounts there before you go farther, for it is that book that regulates the 
wT!i; ^''^'ffo^^ *e fet thing to be known is what accounts in the Ledger ar^ 
entitled to debits and credits out of the transaction. Afterwards you can frame your 
Journal entry without difSculty. •' ' 

r The teacher will then take the printed Journal and hear the class, each pupil in turn 
give the Journal entries verbally from their own manuscript Day Books reQuto.^ 
their answers at the same time to the interrogatories at the bottom of the page ° 

^' ^^Z fi^Jh?^ ^° f ^'' Batisfactorily, they are prepared to write the Journal. This 
from thf nrt,lrT "" f"" °^° ,"'^°"«<"- P' ^<^J Book, without any farther assistance 
!.,fL fP^ '^ f °*'' "P^^/'ates or loose sheets of paper ruled to the Journal 
pattern, taking care to extend the debit and credit amounts in their proper columns 
and upon the same hne with their respectire accounts. The teacher ^should require 
each pupil to repea this operation upon the slate or waste paper until he can wrS th" 
Journal correctly without farther assistance from his teacher.^ His printed^oXou-ht 
Iti '"•das'de during this operation. After this they will have no difficulty in Jour 
h»i 'i^. ^*"■^ly ^""^ dir^t into their Journal, in all respects as they will ^terwarl 
have It to do m business. When this is done with the Lt page of the Day B^k 

duTto^"L:C-p 32 ''"' '™"''°" '" "'"' "'" '^ '"""' ^'''^^^ '^' I""- 
^' ^$^^2?'"''l*''^^'^* I^^P °*' ^^^ '^"'"™"'^ ""'J Balancing the Ledger according to the 

7. Let me caution all teachers against allowing their students to make their Journals or 
ear" iri hfetfc bv' '^'"'' ^T "''' P^'"**'^ '""'''• ^l^^^ ^'^^^ ^ZuT^t to 

*■ "^both'wk^ IZ T ^n M° Tf'' ""'' ^f '"'•■■^'^"y '='"°P"«'^ ""-J check-marked on 
Tl k! ^- ?° *?.I'«'lg«' a small point (■) is best, as it does not deface the 

page. No person can keep his work correct long without checking. When you have 
no figures for your cent columns avoid the useless practice of fillinf them wkh c?phe« 
which are in your way when adding the column. wnn cipners, 

.27 



NEW YOBK, November 1, 1866. 



/ 



* My effects, commencing business this day, consist of — 

Cash in hand $1000. 

Charles Page owes me on his note . . . $500. 

R. Manly owes me on his bond and mortgage . 1500. 2000. 3000 



& 



/ Bought for Cash of William Hay Merchandise per Invoice 



Sold James Carter for Cash — 

60 pieces of two Blue Prints . 
70 n Fancy Stripes 



@$3. 
. // 4. 



$180. 
280. 



10. 



■ Rec'd Cash from R. Manly for his mortgage . 
Also Interest due on the same . . . 



. $1500. 
. 90. 



14. 



Bo't of A. Stuart & Co. on my note @ 60 days Merchandise ^ Invoice 



• Bought of Warden & Bell Merchandise ^ Invoice . 
I Paid them Cash on account of the same 

The balance to their account @ 2 months 
== 25. == 



. $800. 
200. 



' Sold William Hay— 

5 hhds. Sugar, 1180, 1220, 1300, 1100, 1200 = 6000 lbs. 
Tare 10 per cent, off . . . 600 

Net 5400 lbs., @ 5 cts., $270. 
120 pieces Furniture Prints . . . @ $3. 360. 630. 



Rec'd Cash on account of the same 

The balance to his account @ 2 months . 



. 330. 



30. 



• Paid Cash for Store Rent, Advertising, &c. 



// 



Sold for Cash to J. Beck k Co. the remainder of my Merchandise in hand 
240 pieces Merrimac Prints . . . . @ $3. $720. 
30 // Furniture //.... // 2. 60. 



// 



Paid Cash Jennings & Co.'s account for Clothing for my private use 



,,.|; Stock must be here credited for the amount of my property according to Rule 2, and Cash and 
Bills Receivable are debited by Rule 5, these amounts being now received into these books. 
f \c^^^^ *^*°^ received, is here debited for the whole amount; but there being nothing delivered 
for the 590, Profit and Loss is credited according to Rule 8. Bills Receivable can only be credited for 
the fjace of the bill. 

3. Although Warden & Bell might have been here credited for the whole Invoice, and debited for the 
payment upon it, yet the Journal entry we have given is more concise and equally correct. 

4. For the reasons given in the last note, Hay is here only debited for the balance due on this pur- 
chase. If he had made this payment on a former account, then it must appear at his credit, and the 
whole of this invoice at his debit. 

5. We have received nothing in exchange for this cash, and there being no peison responsible to us 
for it, we must debit Profit and Loss. 

6. The figures in the left marginal column of the Journal are the pages of the Ledger, and are 
written as the posting proceeds. They serve as post marks to show how far that operation is com- 
pleted. 

7. As the Day Book entries are journalized, each is marked off in the margin, as the above two 
first entriee. 

28 



600 



460 



1590 



300 



^ 



60C 



300 
150 



780 
130 



NEW YORK, November 1, 1866. 



L.F. 
1 
2 
1 



1 
2 



* Sundries, Dr. to Stock account 
Cash account . 
Bills Receivable account* 



DBS. 


Cms. 


1000 
. 2000 


3000 



5. 



Mdse., Dr. 
To Cash 



600 



600 



2 
1 



2 
1 
3 



1 
2 



Cash, Dr. . 
To Mdse. 



460 



460 



10. 



* Cash, Dr. to Sundries 
To Bills Receivable 
n Profit & Loss 



1590 



14. 



Mdse., Dr. . 
To Bills Payable 



1500 
90 



300 



300 



1 » Mdse., Dr. to Sundries 

2 To Cash . 
2 n Warden & Bell 



800 



1 
2 
2 



25. 



* Sundries, Dr. to Mdse. 
Cash . 
William Hay . 



30. 



3 * Profit & Loss, Dr. . 
2 To Cash . 



2 
1 



8 
2 



330 
300 



150 



200 
600 



630 



150 



Cash, Dr. 
To Mdse. . 



• • 



Profit & Loss, Dr. 
To Cash . 



• • 



780 



130 



780 



130 



I ^' ^or'?hKmount7°* """*'*'' *°"^ ^^^ ^""^ ^"' Receivable account debited 

J ^" ^or'on%5S? ^"''""^ ^°'" *^' ''^'''^ *'"°°°*' ^^'^ ^'"^ Receivable credited 

^ ^payment?*"* ^"^^'' * ^^" ^°'' *^^ ""^^^^ ^°^°>'=«' *°^ <^«^" t^^^™ ^^^ t^e 

*■ ^on SounU °*^ *"°' ^^ ''*'°^® ^^''''^' """^ '"^^ ^^^ P*y"^°* ^ ^"« "^^^ 
« SS^**^®^** ^™** * ^^ ^0^ *^"8 amount? 

'• wtnr?theyTs?rt°d?^' '''' ^^'^^ """^"^^ '^^'"™° «^ *^« ''^'^^'^ -"^ 
7. What is done to show how far the Day Book is journalized? 

6vtrfLe&Ttirll?s^?.r.^^^ ""^""^ >« understood after 

retafn it ' ' Purposes of instructibn, we deem it advisable to 

29 






NEW YOBK, December 1, 1866. 



Received by the packet Gladiator, Pratt, master, from London, an Invoice 
of Prints, shipped me by R. Morris, by my order and for my account 
amounting, per invoice, to £450 sterling, due 31st inst. . 2000. 

Paid freight and duty in Cash 500 



10. 



Received Cash from Charles Page for his note in my favor 

== u. , 



* Sold James Day — 

300 pieces London Chintz Muslin, @ $4 
30 n Cambric Handkerchiefs, @ $10 

Received Cash on account of the same . 
u his note @ 3 months for the balance 



. 81200. 
300. 



81000. 
500. 81500. 



• Received from the Executors of my Father's Estate, House and 

Lot 44 Broadway, valued at 815000. 

C^^^ 10000. 



21. 



* Discounted for C. Banks his note @ 1 month for 81000. 

» tf C. Murray // // 9 months for 1500. 82500. 



Deduct 33 days' Interest on Banks's note 5.50 

» 9^\ months' Interest on Murray's note 68.25 



73.76 



Net proceeds paid them in Cash 



Bought of Charles Page Mdse. per Invoice . . 82100. 

Paid him Cash on account 

• Gave him my order on William Hay, payable in Mdse. 
for the balance . 



82000. 
100. 



25. 



Paid Cash my bill for boarding at the Astor House to date 



31. 



• Paid William Hay Cash on loan for 30 days . . . 82200. 

Sold him, on account, 3 pieces best black Broadcloth, viz., 

No. 1144. 24?, 1004. 22^ and 909. 23. = 70 yards, @ 810 700. 



» Gave Warden & Bell my order on William Hay, payable in Cash, for 



n 



Paid Rents, Clerks' Wages, &c., in Cash . 



rS fi M-^iT'?"® ('''■ ^^^^ " *^°*** ^"^ ^'^ng " home* as well as the purchase money-recollect 
2 We do not hITt^ '' """"^ "^^^ ^""^ *^^' ^«<=*"«« that »« a" ^« get l'^ debt to him JruiVI) 

for it We rlnnY. ""^ ^If^o'^pt for the balance of his purchase, because we receired his note 
o on. ^ «* ^^^^^^^ '^^°''<* ^o Claims for the same sum. 

L^ «lf" ^\^-''*'''°* '^ ''""y intended to record our gains and losses by business- and bs wa 

have not earned this property by our business, it would not be proper to cam- t to ?hat accSint 
4 rhfTon^LTJ°'l\^ '° '^r^**. ™^« °« diflFerence in the final closing^of theStock account ^ 

4. The discount upon these notes is a gain to us, we therefore credit Profit and iSss for i t 

8 Wll ^nft h' "^^'J'Vr.^^' ^'•^«^' ^«<=*"«« ^« get in debt to him for payinrthis i^ount for us 
'• "'L^rt^^ecoll^fRut 3" ""'' "^^ ^'"^ "*' Merchandise. because'hJgei into^rjeVrfoT'the 

'' ""^btre^^e^gefiL^^^rfcrthTsIL?^^^^^ ^«^* '^' *^^* ^°^-'^*' ^^' "^^ ^« -^*«^ 



30 



>s 



2500 



500 



1500 



) 



25000 



2426' 25 



2100 



50 



2900 

100 
103 



75 



NEW YORK, December 1st, 1866. 



1 

2 



8 



» Mdse., Dr. to Sundries 
To R.Morris . 
u Cash 



10. 



2 
1 



1 
2 
1 



1 
3 
2 



1 
2 
3 



1 
2 
2 



3 

2 



2 
2 
1 



Cash, Dr. 

To Bills Receivable 



II. 



DBS. 

2500 



500 



* Sundries, Dr. to Mdse. 
Cash 
Bills Receivable 



\ 



' Sundries, Dr. to Stock . 
House and Lot 44 Broadway 
Cash . 



1000 
500 



2000 
500 



21. 



* Bills Receivable, Dr. to Sundries 
To Cash .... 
/' Profit & Loss 



* Mdse., Dr. to Sundries . 
To Cash . 
'f William Hay . 



25, 



15000 
10000 



2500 



500 



1500 



25000 



2100 



2426 25 
73 75 



Profit & Loss, Dr. . 
To Cash 



2 
2 



3 
2 



============== 31. 

• William Hay, Dr. to Sundries 

To Cash . . . . 

// Mdse. . . ' * 



50 



2900 



» Warden & Bell, Dr. 
To William Hay 



2000 
100 



so 



Profit & Loss, Dr. 
To Cash . 



100 



^' ^io^r^^''^''' ^^^^''^ ^""^ ^°y "^'•^ t^*° th« ^"»o»nt for which we credit 
3' ffiimoSnt^h^in^^""'*-^*'^ *^ ""P*^^ ^*^«°«« °f tl^i« invoice? 

notes? ^'' ""^^^'^ ^""^ ^^^ ^3.75, it being a deduction from the 

k S5^ ^^'J® ^'i^^* H*y for this order? 

»• Su^ !f ??^®^^*ed in this case? 

7. Why debit Warden & Bell and credit Hay for this order? 



31 



2200 
700 



103 ^ 75 



100 



103 75 



•/ 



ON OPENING AND CLOSING THE LEDGER. 

When the pupil has Journalized the first Day Book and afterwards carefully compared 
his Journal with it, he will open his Ledger. In a clean text hand write the title of each 
Account, giving it five or six more lines of space than on the printed Ledger. Insert the 
abbreviations Dr. and Cr.^ at the top of the page only. Then post the Journal into the 
Ledger. Before attempting this, it will be well to compare the entries from the printed 
Journal to the Ledger. In expressing the entry upon the Ledger, it will be seen that a 
debit is always To that Account which receives credit for this sum, and the Cr. Account 
expresses the same entry By the Account that was made Dr. for the same sum. Where 
several accounts are referred to, the expression is either To or By Sundries. But the 
learner will acquire the process more readily by seeing it done on his printed Ledger than 
by any other means. But let the amount always be first inserted, the date and other par- 
ticulars afterwards. When the Journal is posted,' compare and check every entry from it 
to the Ledger, check-marking them thus |/ with a pencil on the inner left-hand marginal 
line of the Journal and on the double line on the left of the money column on the Ledger. 
Then add up all the Accounts' and take ofi" a Trial Balance, both sides of which must come 
out equal. — See form at the end of the Ledger, page 36. 

After studying the oral exercises under each Account upon the Ledger until he can 
answer them readily, the pupil is prepared to close his Ledger. Though this is the most 
difficult part of the process of Book-keeping to understand, I think the following method 
of elucidating it will make the matter intelligible. 

By closing a Ledger we make every Account upon the face of it even. *The purpose 
of this is to dispose of all the Balances in such a manner as to exhibit and record the 
increase or decrease of Capital up to the present time. 

I have found by experience that the most simple and rational explanation of the Balance 
Account will be found in the following process.* Let the pupil be required to make up 
from his Ledger, upon waste paper, a list of his effects thus : — 



From the Bills Keceivable Account I find I have Notes in hand amounting to $500. 
By the Cash Account, I find cash in hand ...... 3,080. 

By W. Hay's Account, I perceive he owes me . 

Making the total amount of my effects .... 

By Bills Payable Account, I find I owe on my Notes 300. 

And to Warden & Bell, By their Account, I owe . 600. Am't I owe, 900. 

Leaving my present Net Capital ...... 



300. 
3,880. 



2,980. 



Now, compare this statement with our Balance Account, and I shall be much mistaken 
if it does not give you a clear insight into the nature and object of that Account. You will 
DOW close all the Personal and Property Accounts, ruling them off to the same pattern 
given on our Ledger, transferring the Balances at the same time to the proper side of the 
Balance Account. When this is completed you will find the present Net Capital exhibited 
by the Balance Account as in the above statement, $2,980, which according to the Stock 
Account is $20 less than the Capital we opened the books with. You find the particulars 
of this loss at the Profit & Loss Account. Close that Account into Stock and then you 
will find that the Stock and Balance will exactly close each other — a result that must 
always take place when the operations are correct, because all gains must produce a cor- 
responding increase of property, at the Dr. side of Balance, and through the Profit & Loss 
Account the credit side of the Stock is increased exactly to the same amount. Losses affect 
these two Accounts through the same channels also precisely to the same extent. 

These remarks apply to the first set of the following Books. After bringing all the 
Balances down and posting the second set, the process of closing is the same as in the first 
Balance. 



1. Where are the abbreviations Dr. and Cr. placed? 

2. What 13 the first thing to be done after posting the Journal ? 

3. What next ? 

4. What is the purpose of closing the Ledger ? 

* See also Notes 2 to 6, page 18. And directions for ruling, pp. 56 and 57. 

a2 



Dr. (What I Owe.) 



STOCK ACCOUNT. 



(My Effects.) Cr. i 



1866. 



! I 



Nov. 80 Jo Profit & Loss* 

// Balance 



Dec. 



31 



To Balance 




1866. 

OY. 1 By Sundries 



3000. 1 

ao. *■ 



80 By Bal. bro't down 
'ec. )[4 // Sundries 27,980. 

n u Profit & Loss f. 3 




2980 

25000 

520 

^8500 



1. What is posted to the Dr. side f 

2. What to the Cr. side 

3. When is the account closed ? 

4. How does it then close ? 

5. How do we mark the transfers? 

6. YThy are the balance entries red? 



1. What I owe. 

2. The amount of my capital. 

3. After the Profit & Loss is closed. 

4. To or By Balance. 
6. F. or Folio. 
6. Because they begin the new account. 



(Pnrehases.) 



MERCHANDISE. 



(Sales.) 



1866. 

Nov. i 5 

14 

10 



Dec. 



1 



to Cash 
// Bills Payable 
// Sundries noo. 

/r Profit & Loss f. 



To Sundries 

I // // i600. 

// Profit & Loss f. 



600 
300 
800 
170 



1870 



2500 

2100 

600 



il866. I 

Kov. 5 By Cash 

25 // Sundries 

80 // Cash 



5200 



1. What is posted to the Dr. side ? 

2. What to the Cr. side? 

3. How does it close if all be sold? 

4. How if part is unsold ? 

5. How do we find the $3000 balance ? 



1870. 
1700. 

Gain na 



^ec. |14 By Sundries 
81 : It Wm. Hay 

ff Balance 



S900. 



BOOO, 
460iL 



f. 



Gain 600. 



460 

630 

780 



1870 




1600 
700 

3000 

6200 


- 



1. The cost and charges of purchases. 

2. The sales made. 

3. To or By Profit & Loss. 

4. By Balance, and To or By Profit & LoflS. 

5. Inventory. See p. 59. 



(Notes Reeeived.) 



BILLS RECEIVABLE. (Notes passed away or lost) 



1866. 
Nov. 



1 To Stock 



9D0O. 

1500. 

600. 



10 ^0 Bal. bro't down 
Dec. 14 // Mdse. 

21 i // Sundries 



12 



S600. 

500. 



3000. 



2000 



2000 



600 

500 

2500 



3500 



1866. I 
pov. I 



1. What does the Dr. side of this account show? 

2. What does the Cr. side show ? 

3. How will it stand when all notes are passed away? 

4. How doc« it always close? 





30 



[)ec. 10 

31 



By Cash 

II Balance 



By Cash 

// Balance 



fol. 


1 

3 


1600 

'00 


1 






2000 






_ 




fol. 


2 

3 


600 

3000 








3500 





1. The notes received. 

2. Those passed away or lost. 

3. Self balanced. 

4. By Balance for the notes on hand. 



• The rules for posting do not apply to the closing entries. 

33 



2 Dr. 



(Money Received.) 



CASH. 



(Money Paid or lost.) Cr. 



18M. 

Nov. 



Dee. 



i 

5 
10 
25 
80 



10 
14 



To Stock 
Mdse. 
Sundries 
Mdse. 



4160L 

loeo. 

9060. 



To Bal. bro't down 
V Bills Receivable 
// Mdse. 
// Stock i*gO; 




1 


1000 


// 


460 


H 


1590 


n 


330 


u 


780 


4160 1 


3080 ' 


2 


500 


// 


1000 i 


// 


10000 i 




14580 1 



1. What does the Dr. side of this account show? 

2. What does the Cr. side show? 

3. What does the difference represent? 

4. How doea the account close ? 

5 How will it stand when all your money is paid away? 

6 Why can the credit side never exceed the debtor? 



1806. 




Nov. 


5 




14 




80 


Dee. 


1 




21 




25 




31 

1 



By Mdse. 
// // 

// Profit & Loss 
h If loeo. 

// Balance fol. 



By Mdse. 

// Bills Receivable 

u Mdse. 

// Profit & Loss 

N William Hay 

// Profit & Loss 7280. 

H Balance fol. 



1 

w 

H 
H 

3 



2 

// 
// 
n 
It 
11 



600 
200 
150 
130 

3080 



"ilBOT 



500 

2426 

2000 

50 

2200 

103 

7800 



146S0 



26 



75 



1. The Dr. side shows all cash received. 

2. The Cr. side shows all cash paid away. 

3. The difference represents the balance in hand. 

4. It always closes By Balance. 

6. Wlien all is paid away the account must be even. 
6. Because we cannot pay away more than we receive. 



(My Notes Paid.) 



BILLS PAYABLE. 



(My Notes passed away.) 



1808. 

Nov. 



Dec. 



30 ! To Balance 



31 



To Balance 



fol. 



foL 



1. What do the Dr. and Cr. sides of this acc't show? 
8. What does the difference represent? 
8. How does the account always close ? 




1866. I 

Nov. 14 By Mdse. 



80 



By Bal. bro't down 




1. The Dr side is the amount taken up, the Cr. side the notot 
« passed away. 

2. The balance I still owe on my notes. 

3. Always To Balance, never By Balance. 



(My Acct. against him.) 


WTT.T.T A M H A Y. (His Ac ft. against me.) 


1886. 

Nov. 


25 

80 
81 


i 
To Mdse. 


1 

2 


300 




1886. 

Nov. 

Dee. 


80 

21 
81 


By Balance fol. 


3 

2 

// 

3 


300 




Dee. 


1 To Bal. bro't down 
// Sundries '"g- 

aooo. 


800 

2900 

1 


By Mdse. 

u Warden & Bell aoo. 

// Balance fol. 


100 

100 

3000 




■fr 




3200 




3200 

1 




1. What does the debit and credit side of t 

2. How does it close ? 


his at 


scount Bh( 


>w? 1. Explaii 
2. All per 


led in the parenthesis at the he 
sonal accounts close either To c 


sad. 
)rBy 


Balance. 




WARDEN & BELL. 


laesL 

Nov. 


30 
31 


To Balance fol. 


3 

2 

3 


600 




1866. 

Hov. 


14 
30 


By Mdse. 


1 


600 




Dee. 


To Wm. Hay 
// Balance fol. 


100 

500 


By Bal. bro't down 


600 






600 




600 


















BOBEI 


IT MOBI 


US. 


18ML 

Dec. 


31 


To Balance fol. 


3 


2000 


1 


Deo. 


1 


By Mdse. 


2 


2000 








. 











34 



fl 



Dr^(ltsValue or Cost.) HOUSE, 44 BROADWAY. (What it brings me m.) Cr 



1866. 

Dec. 



14 



To Stock 




1. How does this accotmt close if the property be on hand? 

2. How if sold? tr IT J 



1866. 

Dec. 



31 



By Balancf 



I'oL 



3 



:K 



1. By Balance if you still own the propertv. 

2. If sold close To or By Profit k Loss. ' 



(Expenses and Losses.) 



PROFIT & LOSS. 



(Gaini.) 



1866. 

Nov. 



80 



Dee. 



25 
81 



To Cash 

II u 



KetLoa 



Ml. 



To Cash 2 

// // 158.76 2 

// Stock for net gain, f. 1 



150 
180 



280 



50 

103 
520 



673 



75 



75 



1866. 

Nov. 



1. What do the Dr. and Cr. sides of this account show? 

2. What accounts close into it? 

?* S^®*^ ^^ ** closed, and into what account does it close? 
4. What does the difference between the sides represent? 



BALANCE 

(ly Effects and Debts dne me.) 



1866. 

Nov. 



80 



Dee. 



81 



To Bills Receivable 
// Cash 
// Wm. Hay 

Net capital 3980 



f. 



1 

2 



To Mdse. fol. 

// Bills Receivable 
// Cash 

// Wm. Hay m«»^ 
•• House 

Net cap. 28600. 



1 

2 
8 



500 

8080 

800 



3880 



3000 
3000 
7300 
3000 
16000 



31800 



1. What is transferred to the Dr. side? 

2. What to the Cr. side? 

3. What does the diflFerence represent? 

4. How does the account close? 

6. Is Stock or Balance first closed? 



Dee. 



10 By Cash 
80 



21 
31 



// Mdse. 380. fol. 

n Stock, net loss fol. 



By Bills Receivable 
11 Mdse. «gg fol. 

Net Gain 



52a 



I 

1 
1 
1 


90 

170 
20 




1 
1 


280 




2 
1 


78 
600 


75 


1 


678 


76 



1. The Dr. side shows all expenses and losses, and the Cr. 

side all gains. 

2. All accounts exhibiting gain or loss are closed into this 

account. 

3. This is the last account closed but two. It alwavs c1o«m 

into Stock, never into Balance. 

4. The difference represents the net gain or loss. 



ACCOUNT. 

(What my concern owes.) 



1866. 

Nov. 



Dee 



30 



31 



By Bills Payable 
Warden & Bell 
Stock for net capital 1 



// 



900. 



By Bills Payable 
II Warden & Bell 
n R. Morris 
M Stock for net capital 




2800. 



1. All my effects. 

2. All amounts that I owe. 

3. Net capital or net insolvency. 

4. By Stock for net capital, or To Stock if I 

5. Usually the Stock first. 



•m inaoIveBt. 



35 



ProofSheetNoT.80, 18«6. Drs. Crs. Proof Sheet Dec. 81, 1866. Drs. Cbs. 



u. 



'ii 



ii 



Stock 

Mdse. 

Bills Receivable 

Cash 

Bills Payable 

Wm. Hay 

Warden & Bell 

Profit & Loss 



f. 



Stock f 

Mdse. 

Bills Receivable 

Cash 

Bills Payable 

Wm. Hay 

Warden & Bell 

R. Morris 

House in Broadway 

Profit & Loss 




Note.— These proof sheets or trial balances are taken off for the purpose of ascertaining^ 
it both sides of the Ledger are alike in amount. If this sheet comes out correct, your 
Ledger will be sure to balance; but if there should be a difference between its sides the 
Ledger will certainly not balance until the errors are sought out and rectified. ' 

Teacher's Examination.— After closing the first of the preceding sets, the pupil 
should be able to answer his teacher the following questions. If he cannot readily do so 
he should refer again to the instructions under the accounts. If he does not wish to cheat 
himself out of the instruction that he desires to obtain, he should by no means consult the 
key, — that being intended for teachers only, those who teach themselves included. 

Q. 1.— What was your net capital at the time of closing, and which of the accounts 
show it ? 

-What was your net gain or loss, and which of the accounts show it ? 

-What was the whole amount of your gain, and what was the whole amount of 

your loss. 
-What did you gain or lose on your Merchandise account? 
-What was the amount of Merchandise purchased ? 
-What was the amount of your sales ? 

-What amount of Merchandise was there on hand, or was there any ? 
-What amount of Cash on hand ? 
-What amount of Bills Receivable on hand ? 
-What do you owe on your Notes ? 

-What is the whole amount of your debts, and what account shows it? 
-What is the whole amount of property you now possess, and what account 

shows it ? 

What amount of property did you possess at the time of opening the books and 
what account shows it? ' 

What were your average daily sales for the month of November, the time your 
books were open, allowing there were twenty-six business days in it ?* 

What was the gain per cent, on your total sales ?-(■ 

The pupil should, when he balances his Ledger the second time, answer the same ques- 
tions upon the balance of each account. ^ 



2. 
3. 

4. 

5. 

6. 

7. 

8. 

9. 
10. 
11. 
12. 

13.- 

14.- 

15- 



» Found thu»-Total sales per Merchandise, Crs. is $1870 -- 26 = 71 fi average daily sales. 

36 



SET II.— DOUBLE ENTRY BOOK-KEEPING. 

EXEMPLIFYING THE TRANSFER OF BUSINESS 

FROM THE PRECEDING TO THE PRESENT SET. 
THIS SET EMBKACES ALL THE MOST APPKOVED FORMS OF 

AUXILIARIES, 

CONNECTED AS SUCH WITH THE PRINCIPAL BOOKS. 



Also, concise and comprehensive rules for Journalizinsr, practically illustrated with ORAL 
EXERCISES. 
The written exercises embrace — 

Illustrations of Buying and Selling Merchandise on private Account and on Account of 
others. 

Buying and selling the same on joint Account. 

Importing and Exporting on private Account, on Account of others, and on Account of 
ourselves and others in Company. 

Receiving and forwarding Merchandise. 

The management and settlement of Executors' Accounts. 

Buying, Selling, Remitting, Collecting, Discounting, Accepting, and Paying Bills of 
Exchange. 



SHIP OWNERS' ACCOUNTS. 

As sole owner, as part owner, and as agent for the owners, exemplifying a dividend and 
settlement of their Accounts, the adjustment and settlement of Marine Losses, and of Loss 
by Fire. 

We have so studiously avoided lengthening the process of instruction by any unnecessary 
entries, that probably no two entries can be found in the set which do not illustrate a 
different application of the principles of the science. On the other hand, the utmost care 
has been taken to carry instruction into every department of the most extensive and 
diversified commerce, to omit no information necessary for forming the most accomplished 
Accountant. The whole is condensed into about twelve pages of Day Book and Journal 
accompanied with such mental exercises as, if attended to, will leave the learner no means 
ot getting through the written exercises without mastering the subject. 



DIRECTIONS TO TEACHERS. 

It has been before stated that the preceding set is only designed as an introduction for 
those altogether uninitiated. Those who understand the disposition of the debits and 
credits m the Ledger, will, after a perusal of the initiatory set, commence with the study 
ot the following RULES AND ORAL EXERCISES. They afterwards study the defini- 
tions and answer the interrogatories upon the Auxiliaries. In some cases it may be nece<. 
sary to write the Cash Book and Bill Books, but most of learners will find no difficulty in 
applying them without this trouble. The process of teaching those who have been through 
the introductory set and those who commence here, is hereafter in all respects the same. " 

37 



I! 



SET II.— DOUBLE ENTKY BOOK-KEEPING. 

RULES FOR JOURNALIZING, WITH ORAL EXERCISES. 



Note. — The pupil should lay a sheet 

Give the general rule for debits 
and credits. 

Repeat the general rule for open- 
ing books. 

Examples. 
QuES. 1. If you begin business 
with a capital of $7000 
cash, what will be your 
Journal entry? 

2. If you have cash $7000, 
merchandise $3000, W. 
Hay owes you $5000, and 
you own the brig T^oy 
worth $5000 ? 

3. Suppose you owe at this 
time on your notes and 
bonds $2000, to R.Morris 
on acct. $3000. 

4. State more particularly 
what is meant by the 
term "Sundries to 
Stock." 



LESSON I. 

of paper over the answers while he reads the questions to himself. 

Rule I. — The debits and credits arising out of every 
transaction must be equal in amount. 

Rule II. — The Stock account represents myself, and 
must therefore be debited for what I now owe and cre- 
dited for what I now possess. 

Ans. 1. Cash, Dr $7000 



7000 
3000 
5000 
5000 
5000 



$7000 
20000 



2000 
3000 



5. Explain the full mean- 
ing of the expression 
"Stock to Sundries, 
your 3d answer. 



in 



II 



Hi 



h^ 



Repeat the rule for debiting per- 
sons. 

Examples. 

6. If W. Hay buys $600 
worth of mdse. of you on 
Book acct. ? 

7. If you pay R. Morris 
$1000 cash which is at 
his credit on your Books ? 

8. If Morris make an abate- 
ment of $100 from the 
above acct. and pay him 
$900 in full for balance? 

Repeat the rule for crediting per- 
sonal accounts. 

Examples. 

9. SupposeW. Hay pays you 
the above $600 in cash ? 
If he fail and you receive 
$300 cash and lose the 
balance ? 



10. 



To Stock, 

2. Sundries to Stock, 
Cash, 
Mdse. 
W. Hay, . 
Brig Troy, 

3. Stock to Sundries, 
To Bills Payable, 

R. Morris, . 

4. It may be stated more fully thus : Several accts 
are Dr. to the Stock acct. which is credited 
for $20000 

The Cash acct. is Dr. for . . $7000 
And the mdse. acct. is debtor for 3000 
And Wm. Hay's acct. debtor for 5000 
And the Brig Troy's account is 

debtor for . . . . 5000 

5. To express it in full we might say : The Stock 

account is debtor to several accts. for $5000. 
viz., it is Dr. to the Bills Payable account^ 
which is credited for . . . $2000 
And it is Dr. to R. Morris's account, 

which is credited for . 3000* 

Rule III. — When he gets into my debt he is Dr. for 

the amount. When I get out of his debt he is Dr. for 

what I pay or cease to owe him. 

Ans. 6. Wm Hay, Dr. 

To mdse. sold him on acct. 

7. R. Morris, Dr. . 

To Cash paid him in full, 

8. R. Morris to Sundries, to close 

To Profit & Loss, . 
// Cash paid him in full, 
Here we only pay Morris $900, but we debit him for 
$1000 — what we cease to owe him. 

Rule IV. When I get into his debt he is Cr. for the 
amount. When he gets out of my debt he is Cr. for 
what he pays or ceases to owe me. 

Ans. 9. Cash, Dr $600 

To Wm. Hay in full, . . 600 

10. Sundries to Wm. Hay, to close acct 600 

Profit & Loss for abatement, . 300 
Cash received in full, . . . 300 
Here you have only received $300, but the rule re- 
quires you to credit him for $600 — the amount he ceases 
to owe you. 



$600 
1000 
1000 



$600 

1000 

100 
900 



• While this and the preceding answer will give the learner a distinct conception of the meaning of all similar Journal exores. 
Kons, these expeditions at the same tune show how much accountants have abbreviated common language without obscurina 
their meai»u»g; for while the roles are observed no language is less liable to be misunderstood than that used by accountanti 

38 



SET II.— DOUBLE ENTRY RULES. 



Quest. 11. If Hay balance his 
Book account by giving you 
his note for $600 ? 

12. If he afterwards fail and 
you lose the am't of the note ? 

Repeat the general rule for re- 
ceiving and delivering property. 

Examples. 

13. If you sell merchandise for 
cash $500? 

14. If you sell it for the pur- 
chaser's note ? 

15. If you pay your own note 
for $1000, half in cash and 
half in merchandise? 

16. If you buy merchandise for 
cash $100 ? 

17. If you give your note for 
the same purchase ? 

18. If you buy $400 worth of 
merchandise and pay the 
amount in other merchandise 
from store? 

Give a more particular rule for 
debiting property accounts. 

Examples. 

19. If you buy the brig Tribune 
for $12,000 and pay $6000 in 
cash,and give a Bottomry bond 
on the vessel for the balance ? 

20. Suppose this vessel becomes 
yours by the legacy of a de- 
ceased friend ? 

21. If you pay cash $1000 for 
repairing her ? 

Give the rule stating when pro- 
perty accounts are always credited. 

Examples. 

22. If you receive $1000 cash 
for freight of Brig Tribune ? 

23. If your agents Taylor & Co. 
advise you that they have re- 
ceived $1500 cash for freight 
to New Orleans ? 

24. If you sell the Brig Tribune 
for $16,000 and receive in 
payment a dwelling-house in 
2d street and a Bill of Ex- 
change on London for $6000 ? 

26. If you lose the Brig Tribune 
■ by fire or shipwreck before 

she is insured ? 
26. If you present $500 cash to 

a friend ? 



Ans. 11. Bills Receivable Dr. . . 600 
To Wm. Hay for his note to close acct. 

600 



600 



12. Profit and Loss Dr. . 

To Bills Receivable, . . . 600 

Rule V. The thing received Dr. to the thing delivered. 



500 



13. Cash Dr 

. To Merchandise, 

14. Bills Receivable Dr. 
To Merchandise, . 

15. Bills Payable to Sundries, 
To Cash for money paid, 

II Merchandise for sale, 

16. Merchandise Dr. 
To Cash, .... 

17. Merchandise Dr. 
To Bills Payable, 

18. Merchandise Dr 
To Merchandise, . . 

Some contend that any entry of such transactions is 
unnecessary — ^that it is like giving change for a $50 
bank note. But if such transactions are not recorded 
your merchandise account will not show the amount of 
your purchases nor the amount of your sales. 
Rule VI. When property becomes mine it is Dr. for 

its cost or value. When it costs me anything 

afterwards it is Dr. for that cost. 

19. Brig Tribune to Sundries, . 12,000 



500 
1000 



100 
100 



400 



500 

500 

500 
500 

100 

100 



400 



12,000 



6000 
6000 

12,000 



To Cash, 
// Bills Payable, 

20. Brig Tribune Dr. 
To Stock, . 

Here the property is Dr. for its value although it 
costs you nothing. 

21. Brig Tribune Dr. . . . IQOO 

To Cash, 1000 

Rule VII. When it brings me in any thing it is Cr. 
for the amount. When it ceases to be'mine it is 
Cr. for its value or what I receive for it. 

22. Cash Dr looo 

To Brig Tribune for Freight, 

23. J. Taylor & Co. Dr. . . . 1500 
To Brig Tribune, for freight collected, 

24. Sundries to Brig Tribune, 
House in 2d street, . . . 10,000 
Bills Receivable, . . . 6,000 



1000 

1500 
16,000 



25. Profit and Loss Dr. . . . 10,500 

To Brig Tribune, to close account, ' 10,500 



26. Profit and Loss Dr. . . . 500 

To Cash, . . . . 500 

Thus, you perceive, when property ceases to be yours, 
either by sale, loss, or giving away, it is to be credited' 
39 



\ 



il 



It 




SET II.— DOUBLJL ENTRY BOOK-KEEPING. 

RULES FOR JOURNALIZING, WITH ORAL EXERCISES. 



DOUBLE ENTRY EULES. 



Repeat the Rule for debiting and 
crediting Profit and Loss accounts. 

Examples. 
QuES. 1. If you lose your purse 
with SlOO cash in it? 

2. If you find S500 cash and 
cannot find the owner ? 

3. If you pay cash for a new 
suit of clothes 850 and 8lOO 
for new house furniture. 

4. If you lose $1000 worth of 
mdse. by fire, uninsured ? 

Repeat the Rule respecting Bills 
of Exchange, Drafts, Orders, 
&c. 

5. What is a Bill Receivable ? 

6. What is a Bill Payable? 

7. If you draw on R. Morris 
for $100 and sell the bill for 
cash at par ? 

8. If you sell at 5 per cent, pre- 
mium? 

9. If you sell at 5 per cent, dis- 
count ? 

10. What will be Morris's entry 
when he accepts this bill ? 

11. If Morris draw on you at 
sight in favor of S. King, for 
$1000, and you pay the bill in 
cash ? 

12. If he draw at 60 days' sight 
in favor of Wm. Hay, and 
you accept ? 

13. Afterwards you take up this 
acceptance with cash ? 

14. If Wm. Hay draw an order 
on you for $50 in favor of J. 
Toole, which you pay in mdse. 
from store ? 

15. If you owe James Day $20 
and give him an order on Hay 
payable in mdse. for $20 ? 

16. If you buy a Bill of Ex- 
change for $1000 for cash at 
par? 

17. If you buy at 5 per cent, pre- 
mium ? 

18. If you buy at 5 per cent, dis- 
count ? 



LESSON IL 

Rule VIII. Profit and Loss accounts are always debited 

when I lose and credited when I gain. 
Ans. 1. Profit and Loss, Dr. . . . $100 



$100 

500 
150 



To Cash, 

2. Cash, Dr 500 

To Profit and Loss, 

3. Sundries to Cash, .... 
Profit and Loss or Expense acc't for 

the clothes, 50 

House furniture for the articles bo't 100 

. 4. Profit and Loss, Dr. . . . 1000 

To Merchandise, .... 1000 

Rule IX. Credit a person always when you draw on 
him on your own account, and debit him when he 
draws on you on his account.* 

5. Any obligation on paper which I hold against others. 

6. The same kind of obligations which I have given 
to others, and which they are holding against me. 

7. Cash, Dr loo 

To R. Morris, 

8. Cash to Sundries, .... 105 
To R. Morris for the bill, 

Profit and Loss or Exchange acc't. for 
the premium, . 

9. Sundries to R. Morris, . 
Cash for the net proceeds, . 95 
Profit and Loss or Exchange for 

Discount, .... 5 

10. Duff, Dr 100 



To Bills Payable, 

11. R. Morris, Dr. 
To Cash, 

12. R. Morris, Dr. 
To Bills Payable, 

13. Bills Payable, Dr. 
To Cash, 

14. W. Hay, Dr. 
To Merchandise, 

15. James Day, Dr. 
To William Hay, 

16. Bills Receivable, Dr. 
To Cash, 

17. Sundries to Cash, 
Bills Receivable for the Bill, 
Profit and Loss or Exchange for 

the Premium, 

18. Bills Receivable to Sundries, 
To Cash for money paid, 

Profit and Loss for Discount, 



100 
100 

5 

100 



1000 
1000 
1000 



50 



20 

1000 



100 

1000 

1000 

1000 

50 

20 



1000 

50 
1000 



1000 
1050 



Hi 



950 
50 

it ^^lt'^TaTon";?^e^V5.r^^^^^^^^ and the two following qnestions; otherwise 

on one or the other of the Bill AccouX ^ ^" '''^ ''"^ ^® '*"'" "P°° ^ correspondent mnat appear 

40 



Quest. 19. If you sell this bill at 
10 per ct. premium for cash ? 

20. If you sell it at 10 per ct. 
discount? 

Give the rule for keeping the 
accounts of consignments received. 

21. What do you do with the In- 
voice of the property? 

Examples. 

22. If you receive $1000 worth 
of goods from Morris for sale 
on his acct. You give bonds 
for $500 duties and pay frt., 
&c. in cash, $100? 

23. If you sell $100 worth of 
these goods for cash? 

24. If Morris draw on you at 
sight for $30.0 and you pay 
the draft, $100 in his own 
goods, $100 worth of your 
own goods, and $100 in cash? 

25. How is the net proceeds 
found on any account sales ? 

26. Suppose Morris's goods all 
sold for $2000. You have 
paid charges $700, your com- 
mission is $100, leaving the 
net proceeds $1200. How do 
you close the sales ? 

27. Where should this entry be 
first made? 

28. Why not credit Morris for 
the amount of the Invoice of 
the above consignment? 

29. If he draw on you for $500 
on acct. of the sales? 

Give the rule for keeping acct. 
of property you consign to others. 
Examples. 

30. If you ship by the Herald 
and consign to R. Morris, 
London, for sale on your own 
acct. Mdse. 4000, pay charges 
in cash, $400, give your note 
for insurance, 600 : = $5000 ? 

31. If you draw on Morris for 
$500 on % of this consignm't ? 

32. If he return you acct. sales 
$6000, with a remittance in 
specie in full for same ? 

33. If he send you the acct. 
sales without the remittance ? 

34. If you receive acct. sales, 
$6000, and before making an 
entry of the returns draw on 
him and sell the bill for cash 
at 8 per ct. premium ? 



Ans. 19. Cash to Sundries . . . 1100 

To Bills Receivable . . . 1000 
// Profit & Loss, for premium . • 100 
20. Sundries to Bills Receivable . . 1000 
Cash for net proceeds . . . 900 
Profit & Loss for the 10 per ct. Dis- 
count 100 

Rule X. — Debit the owner's Sales for all charges 
incurred, and credit the same account for what the pro- 
perty sells for. 

21. I enter a copy of it on the Invoice Book, but 
make no other entry of it. 

22. R. Morris's Sales to Sundries . . 600 

To Bills Payable for the bonds . 500 

// Cash paid for freight, &c. . 100 

23. Cash, Dr 100 

To Morris's Sales ... lOU 

24. R. Morris, Dr. to Sundries . . 300 

To Morris's Sales . . . 100 

f/ Merchandise. ... 100 

H Cash 100 



25. By deducting all charges, including my commis- 
sion, from total sales. 

26. R. Morris, Sales to Sundries to close 
acct. . . . . . 1300 

To Commission .... lOU 

It R. Morris, for net proceeds . 1200 

27. The particulars of such entries must always ap- 
pear upon the Day Book. 

28. Because I do not get in debt to him for any thinw 
but the net proceeds of what the goods sell for. 

29. I debit his private account for all advances made 
on account of the consignment, and never the 
consignment account. 

Rule XL — Debit Shipment or Adventure to such a 
place for the cost and charges of the investment, and 
credit the same account for what it brings me in. 



30. Shipment to London to Sundries 

To Mdse 

// Cash .... 
// Bills Payable 



5000 



4000 
400 
600 



31. I credit his private account for it — not the ship- 



ment to London. 

32. Cash, Dr. . . . 

To Shipment to London 

33. R. Morris, Dr. 

To Shipment to London 

34. Cash, Dr. . . . 

To Shipment to London 
41 



w 
6000 

6000 

6480 



6000 
6000 
648G 



i I 



'ill 

t 

i • 
I 1 



SET II.— DOUBLE ENTRY BOOK-KEEPING. 



RULES FOR JOURNALIZING, WITH ORAL EXERCISES. 

LESSON III.— ON JOINT ACCOUNTS. 

Joint Accounts » or special partnerships imply those operations in which several indi- 
viduals or commercial houses unite in the purchase and sale of a particular article on specu- 
lation. Iheir joint interest is confined solely to these transactions, and the parties give 
themselves no joint title, neither do they become publicly known as a firm. Their sales 
and sometimes their purchases, are effected by a manager, who generally keeps the account 
ot tbe same in his own private books; and the partnership terminates for the time with the 
sa e ot the joint property. The learner must understand that although we cannot avoid 
calling these connexions partnerships, yet they differ essentially from General Partner- 
^IPS, where the parties are legally and publicly known under a firm or title, as Hay, 
wood & Co., and who contribute a certain capital for the purpose of carrying on a general 
business for a specified period. j & & 

,-J^%'^^T^^'' ?f ^^^jy^J"^ ^^^^^ ^^®P« *^« account « in his own private books under the 
title ot bales in Co.* If he have more than one in hand, he distinguishes them by prefix- 
ing to the title numbers, as, 1st Co., 2d Co., &c. » The manager debits his joint account for 
HIS own share only of the first cost, and for all charges incurred while in his hands, ahd 
credits the same account for the total sales, for the other partners' shares in the property 
as well as his own.* f f j 

The following remarks will be useful in enabling the student to comprehend the transac- 
tions to which this rule is to be applied. The manner of opening the accounts by the manager 
as well as the silent partners, will vary according to the manner of making up the joint 
stock put m speculation. When the manager or any of the partners purchases or furnishes 
property to the concern, ' each of the other partners must be immediately furnished with a 
copy ot the invoice; and when the sales are completed, » each one must have a copy of the 
account sales. The joint stock is generally made up in one or the other of these three 
ways. 

1. When each Partner advances his own Share— Each silent partner keeps his 
account under the title of » "Adventure in Co.," debiting it for its costf and crediting it 
lor what It brings him in, precisely as he would a private adventure or consignment. 

I he manager makes his '' Sales in Co. Dr. for his own share only, and receives the 
other partners shares as he would consignments. 

..cfi ^^- '^n^,?]f'^t^^^ purchases OR FINDS THE WHOLE Stock— " As before he debits 
bales in Co. for his own share, and he debits each of the silent partners for their share- 

they at the same time crediting him and debiting their "Adventures in Co." 
3. Ir THE Manager's share be paid or put in by one or more op the silent 

PARTNERS— The manager's debit entry will be as before, " and he credits him or them to 

whom he becomes indebted for his share, they at the same time debiting him for the same 

amount. Their own "Adventures in Co.," they debit as before. 



DOUBLE ENTRY RULES. 



mirgTA^^^axTbTp^^^^^ what accounts do/s he debit for it. 12. If thJ 

have aiHo^ aVule tharcan n^vPr^^^^^^^^ circumstances, an awkward and dangerous principle to admit in accounts. Wa 
n^s l^^created by advance, ifde to JL ..,iXoT:t:Z:'XrX:^r^ ^^ed^ot HanSr^^ri^S^; ^esrn 

42 



Eepeat the rule for conducting 
a joint account as manager of the 
sales 

Examples. 



Quest. 1. How does the silent 
partner keep his account ? 

2. If you purchase on your note 
for your joint acct. with Wm. 
Hay, $1000 worth of Mdse.? 

3. Why not debit sales in com- 
pany for the whole amount ? 

4. What would be your entry, 
supposing Hay gave you his 
note for the $500 before you 
made the above entry ? 

5. What would be Hay's entry 
in Answer 2 ? 

6. If he gave Duff his note, as 
in Answer 4 ? 

7. What will be your entry 
where Hay puts $2000 worth 
of goods in your store for sale 
on joint acct. ? 

8. Why not credit Hay for the 
whole $2000? 

9. What will be Hay's entry in 
Answer 7, if he purchase the 
goods on his note ? 

10. If you sell $2000 worth of 
the above goods, receiving in 
payment cash $1000, and the 
buyer's note for $1000 ? 

11. If you barter the remainder 
for goods on your own acct. ? 

12. The property being all sold 
for $3000, and the whole first 
cost $2000, and your 5 per ct. 
commission being $150, what 
entry will close sales? 

13. Explain how you find the 
amts. composing this entry? 

14. If you receive from R. Morris, 
of London, $6000 worth of 
Mdse. for sale on acct. of him- 
self, J. Taylor & Co., of New 
Orleans, and yourself, upon 
which you pay cash for duties 
$1000? 



Rule XII. — Debit Sales in Co. for my own share 
only of the first cost and for the whole charges incurred 
while in my possession, and credit the same account for 
the total sales. 

Rule XIII. — Debit Adventure in Co. for ltd cost, 
and credit for what it brings him in. 

Ans. 2. Sundries to Bills Payable . . $1000 

1st Co. Sales, for my half . . 500 

W. Hay, for his half . . .500 

3. Because Hay becomes legally responsible to me 
from this date for $500, and must, by Rule III., 
be made Dr. for the amount. It becomes his 
property by virtue of our agreement, is at his risk, 
and if lost by fire or perish by any other means, 
not in consequence of my carelessness, he will 
have to pay me this $500. 

4. Sundries to Bills Payable . . . 1000 
1st Co. Sales, for my half . . . 500 
Bills Receivable, for Hay's Note for 

liishalf 500 

5. 1st Co. Adventure, Dr. . . . 500 

To Duff . . . . . 

6. 1st Co. Adventure, Dr. . . . 500 

To Bills Payable .... 

7. 1st Co. Sales, Dr. . . ', , lOOO 

To Wm. Hay ... . 

8. Because I do not get in debt to him for any more 
than my own half. He is still the owner of one- 
half the amount, and if the property never sells 
I shall never be accountable to him for any thing 
but my own share. 

9. Sundries to Bills Payable . . . 2000 
1st Co. Adventure, for his own share 1000 
I^^ff) for his share . 1000 



500 

500 

1000 



1000 
1000 
1000 

2000 



2000 



1000 

150 

1425 

425 



10. Sundries to 1st Co. Sales 
Cash 
Bills Receivable 

11. Merchandise, Dr. 

To 1st Co. Sales 

12. 1st Co. Sales to Sundries, to close acct 

To Commission 
tt W. Hay, for his half N. P. 
If Profit & Loss, for my half gain . 

13. The $2000 debit is the difference between the debit 
and credit sides of the account on the Ledger after 
the sales are completed : from the Cr. side we have 
the total sales $3000 — 150 charges = $2850' net 
proceeds, and $2850 h- 2 = $1425, each share- 
and $1425 — $1000 (my half first cost) = $425* 
my half net gain.* ' 

14. 2d Co. Sales to Sundries . . . 3000 

To R. Morris, for my i Invoice 2000 

Cash paid duties . , . iqqq 



H 



H 



?No^*~''?j** ^^"'S * *Jew speculation, we give it a new title • 2d Co 
them anTfiadTut'KL*ul"rt"Se\f.' ''*"''"^°* ^** ^'"^^°« °^ ^^^^« ^*^^*« ^^*^°^t r«P«*ted study. He must uuOj. 

43 



m 



SET II.— DOUBLE ENTRY RULES. 

RULES AND ORAL EXERCISES. 



SET II.— DOUBLE ENTRY ^OOK-KEEPING. 



« 



1 1 

Ik 

'1. 



I 






It 




Quest. 15. What entry will Taylor 
& Co., New Orleans, make 
when they receive a copy of 
the Invoice? 

16. What entry will they make 
when they receive your acct. 
sales without remittance, their 
i being $3300 ? 

17. What will be Morris's entry 
when he receives your copy 
of the sales, supposing you 
send with it a remittance in 
specie for the net proceeds ? 

18. Suppose William Hay sends 
you $6000 worth of Mdse. 
for sale on joint acct., and you 
make up the joint property 
to $10000 by adding $4000 
worth of tea, what will your 
entry be as manager, each 
partner's share being $5000? 

19. What will be Hay's entry 
in this case ? 

20. Supposing the whole of the 
above speculation only pro- 
duce $5000, leaving the acct. 
in your Ledger even when 
the sales are completed, what 
entry will you make to settle 
the transaction with Hay? 

21. Suppose the goods had pro- 
duced $8000, and your charge 
for commission is 5 per ct., 
how would the acct. close ? 

22. Explain how you find the 
amounts composing this en- 
try? 

23. Supposing the whole specu- 
lation of $10000 was sold for 
$4000, — the first cost and 
your commission being the 
same as before, — how will you 
close the account? 

24. Explain how the amounts 
composing this entry are 
found ? 



2000 



3300 
3300 



4000 

1000 
6000 



Ans. 15. Shipment from London to New 

York in Co., Dr. . . . 2000 
To R. Morris for their ^ Invoice 

16. Duff, Dr 3300 

To shipment from London to New 
York in Co. 

17. Cash, Dr 3300 

To Shipment to New York in Co. 

18. 1st Co. Sales, Dr. to Sundries, my 

half first cost . . . 5000 

To Mdse. . . • . • . • 
// Wm. Hay for amt. paid in on 
my acct. 

19. Sundries to Mdse. . . 
1st Co. Adventure, for his half . 5000 
Duff, for amt. paid in for him . . 1000 

20. One-half of what the goods have produced be- 
longs to Hay, and must be credited or paid to him, 
which only leaves me $2500 for what cost me 
$5000, I have therefore lost $2500, just the amt. 
I owe Hay, therefore, Profit & Loss Dr. for my 
loss 2500 

To W. Hay, for his half N. P. . 2500 

21. Sundries to Sundries, $4200. 

1st Co. Sales, for bal. of acct. . . 3000 
Profit & Loss, for my half loss . . 1200 
To W. Hay, for his half N. P. . 3800 

n Commission, for my commission 400 

22. The $3000 bal. of acct. is the difference between 
the two sides of the acct. upon the Ledger after 
all the sales are posted. The total sales are 8000 — 
400 charges = 7600 ^2 = $3800, each share, and 
my half first cost 5000 — 3800 = 1200, my loss. 

23. Profit & Loss to Sundries to close 1st 

Co. Sales . . . . 3100 
To W. Hay, for his half N. P. . 1900 

H 1st Co. Sales, for bal. of acct. 

on the Ledger . . . 1000 

// Commission, for my 5 per cent. 

in total sales . . . 200 

24. They are found as before by deducting the 
charges from the total sales (Rule 12) ; then the 
difference between my half net proceeds and my 
half first cost is gain or loss. 

The learner should now analyze a number of similar 
entries and find the correct amounts to form the Journal 
entry, which, when correct, will always close the ac- 
count on the Ledger. 

Learners can never readily understand the closing 
entry of either joint accounts or consignments without 
having before them the position of the account upon 
the Ledger. The closing entry must always exactly fill 
up the lesser side of the account there. — See Note 1, 
Morris's Sales, p. 107, and Notes 5 to 12, p. 220. 

44 



1 


day 


31 


II 


30 


II 


1 


II 



REMARKS ON NOTES AND BILLS AND THE BILL BOOK. 

. ^^S^.,^^^^^°g 0^ *^^se books so perfectly explains their nature, use and manner of ent^r- 
mg iiills Keceived and passed away, that any farther explanation seems unnecessjiry 
Learners however, often experience difficulty in determining the precise day upon which 
notes and acceptances will fall due. We shall endeavor, in the following directions to make 
the matter understood. ' 

When the term of a Note is expressed in days, the day of date and the day of maturity 
are always counted as one, or, in other Words, Hhe day after drawing or accepting is the 
first day counted in the time to run. Thus, a bill drawn or accepted on 3Iay 1st at 20 

,^%Z!^ ^1 ^M^ M.y 24th--including three days' grace. A bill drawn or accepted on 
the 29th of April, at 60 days, has to run — » ^ 

In April 

In May 

In June 

In July 

63 days. ^D^e. July 1st. 

Again, a Bill drawn or accepted 30th April, at 90 days, has to run— 

J^^^ay 31 days. 

I°J^?e 30 ^ 

J^J^^y 31 /. 

In August 1 „ 

93 days. "^J^mq^ Aug. 1st. 

It will be observed in the last example that no time is allowed for April althou-h the 
da e IS on the last day of that month ; as, according to the rule laid dowV aborthe ^ 
following the date is the first day counted in the time to run ' ^ 

When the last day of grace falls upon Sunday, the note must be paid the preceding 

thSoks. ''''' '' °''' '^"^^"' ^^"^^^"y ^^'^'^ ^^^« - --^d-S '^^^ b^ls upon 

When the term of a note or bill is expressed in months, 'calendar months are alwavs 

understood and it becomes due in the last month of its term, upon X dafcorrespoS 

of Merchants and Bankers to extend the time of payment for any deficiency in the le^^h 

months^lM^^^^^^ ^'^'i^' "°^ ""f ^^^ "«*« ^'-^^ on the 30th M^rch, also at three 

rrmittinT the t J n • t' '^'^' ''^' ^^^r^''' ^^ ^^^^^ ' ^he custom of merchants not 
permitting the term of the note to extend beyond the end of June, except for the days of 

The following statements will disclose to persons operating extensively in notes and ^ 
re^Ttha^broTdT '? '' '''' matter'when iaw"ac" B^" 



45 



i 



■t 



Ml 



SET II.— DOUBLE EKTEY BILL BOOKS. 

It will also appear that by obtaining one day's advance in the date, two, three, and some- 
times four days are gained in the time of payment. For example, a note or bill drawn or 
accepted on the 28th February, at six months, is due August 31st; but if dated on the 1st 
March, only one day later, it would not be due until the 4th September, thus extending the 
term of payment four days for one day's difference in the date ; and this difference in the 
date is frequently a matter of little consequence to the payee of the bill. 

In all our computations in reference to Notes and Bills, three days' grace are in every 
instance included. 

In the following instances, one day's advance in the date will give the day of payment 
three and four days later.* Notes drawn or Bills accepted February 28th,* 



At 1 n 


aonth, 


are di 


lie Mar. 


31, but if d 


At 2 months. 


II 


May 


1, » 


At 3 


II 


II 


May 


31, w 


At 4 


n 


M 


July 


1, n 


At 5 


II 


II 


July 


31, 9 


At 6 


n 


II 


Aug. 


31, w 


At 7 


II 


II 


Oct. 


\ ' 


At 8 


II 


II 


Oct. 


31, 9 


At 9 


H 


II 


Dec. 


1, » 


At 10 


n 


II 


Dec. 


31, M 


At 11 


II 


II 


Jan'y 


31, If 



II 



II 



n 
II 



May 

June 

July 

Aug. 

Sept. 

Oct. 

Nov. 

Dec. 

Jan'y 4. 

Feb. 4. 



4. 
4. 
4. 
4. 
4. 
4. 
4. 
4. 



One day's advance in the date will in the following cases give 'two additional days in the 
time of payment. Notes drawn or bills accepted April 30th, 

At 1 month, are due June 2, but if dated 1st May will not become due till June 4. 



At 3 months, 


// 


Aug. 2, 


// 


11 


II 


Aug. 4. 


At 4 // 


// 


Sept. 2, 


II 




It 


Sept. 4. 


At 6 // 


// 


Nov. 2, 


It 




It 


Nov. 4. 


At 8 n 


II 


Jan'y 2, 


II 




If 


Jan'y 4. 


At 9 // 


II 


Feb. 2, 


If 




It 


Feb. 4. 


At 11 // 


II 


April 2, 


II 




M 


April 4. 



The above illustrations will serve to disclose the principle upon which we desire to fix the 
attention of our students and all commercial persons having any thing to do with bills. An 
error of one day in recording the maturity of a note or acceptance may cause the holder to 
lose his remedy against the endorsers ; and perhaps cause him to lose the note altogether. 



1. Notes drawn or Bills accepted on the last day of February, with a running time, in months, will advance the day of pay- 
ment three and four days, by dating forward one day. 

2. Notes drawn or Bills accepted on the last day of a thirty-day month, with a running time in months, expiring in a thirtj-- 
one day month, will advance the day of payment two days, by dating forward one day. 

* Our calculations are all made for ordinary years. When f ebruary intervenes, leap-year makes a day's difference. 

46 



SET IL—DOUBLE ENTKY BILL BOOKS. 

We have next to point out the other inconsistency we have alluded to, viz. those instances 
in which several notes or acceptances, dated or accepted on different days and having tlie 
same time to run, in months, will fall due upon the same day. 



Suppose you give four notes dated — 

August 28, at 6 months, 
August 29, at 6 months, 
August 30, at 6 months, 
August 31, at 6 months. 

You will find these notes, although of different dates and all of the same runnin<y time 
will become due on the same day.^ ^ ' 



Again, suppose you give two notes dated — 

March 30, at 3 months, 
March 31, at 3 months. 

Both these notes will be presented to you for payment on the same day.' 



The author trusts that the importance of the subject will be a sufficient apoloffv for the 
length of this article. With the exception of Bankers, the greater part of business men 
have no definite principle for determining the precise day upon which notes and bUls will 
in some cases, become due. 



m«;f?f*®'*?*^'' °'"- ^"J-* accepted on the last three days of thirty-day months, and the last four dors of thirtr-one <1«« 
2 NnVr? * ^''^'^^Stime, m months, expiring in February, will all become due on the same da? ^ tWrty^ne day 

int X%'S mVnth^';^rbXfi^^^^^^^ ^^^-^"^ '^y — *^«' ^'"^ ^ --^°« time, in month., ^^'^ 

47 



BILLS 



1>ATK. 



i86e. 
Pec. 



1867 

Jan. 



so. 



drawer's txamx. 



Feb. 



'I 
M 



*'! 



Mar. 



1^ 



"i 



■ t • 1 



II 

!! 



April 
May 



June 



1 
21 2 

I 'I 3 
10 4 

19 5 

l30 , 6 

Bl 7 

8 

9 , 9 

12 HlO 

25 11 

112 

28 ' 13 

12 14 

15 

16 

17 

18 

19 

20 

21 

122 

123 

24 



\ 



7 

6 
3 

8 



8 

B5 
'Z6 



i8€6. 

Dee. 

1867. 



tl 



James Day, 
0. Banks, 
C. Murray, 
Thomas Edwards, 
James Carter, 
William Hay, 
W. Morris, 
J. Warden, 
William Park, 
James Carter, 
J. Bowline, 
Baker & Fox, 
Warden & Bell, 
J. Taylor & Co., 
W. Wallace, 
Joel Post, 
James Day, 
H. Parnell, 
James Walker, 
Warden & Bell, 
Austin & Co., 
W. Wallace, 
Joel Post, 
(xeo. Barron, 
William Ha , 



ON WHOM OR IN WHOSE 
VATOR DRAWN. 



ON WHAT ACCOUNT. 



Totx TO mini 



Favor of Myself, 



» 
u 
n 
w 
w 
n 



Warden & Bell, 

William Hay, 

Myself, 
bn R. Morris, 
■ Myself, 

Barclay, Hope, 
Favor of Myself, 



Merchandise, 
Cash Lent, 
! Do. 
Merchandise, 
On account. 
Balance of account. 
My note, 

Do., 
Morris's sales, 
An old note, 
Cash Lent, 
Cash, 

My Bill on London, 
R. Morris's sales, 
Estate of A. Lenox, 






k 



// 



Warden & Bell, 
Bill on Landis, 
Favor of Myself, 



// 



Bill on Baring, 
I My favor, 



enewing an old note, 
Estate of A. Lenox, 
Money Lent, 
2d Co. Sales, 

Do. 
An old note for A. Lenox, 
For Cash, &c.. 
Refined Sugars, 
I Hay's accomiii' 



3 C. Murray, 



Favor of Myself, Cash Lent, 



8 months. 
ll month. 

months. 

days. 

days. 

days. 

feO days. 
^0 days. 
4 months. 

1 month. 
Bottomry. 
60 days' s'gt 

1 month. 
60 days' s'gt 

2 months. 
o months. 
60 days. 
60 days. 
6 months. 
80 days' s'gt 
60 days. 

3 months. 
60 days' s'gt 
iiO days. 

'ij moiitii- 



9 months. 



May 18 121 Austin & Co. 

22 W. Wallace, 

June 18 '23 Joel Post, 






25 



24 Geo. Barron, My favor, 



Exchange on Baring Cash, &c., 



2d Co. Sales, 60 days. 

Old note to A. Lenox est. 3 months. 



Refined Sugars, 



60 days' s'gt 
30 days. 



1. When a note or acceptance is received, it is entered, with all the particulars, in the left-hand amount colnmn. 

2. When it is passed away, the date, when and how it is disposed of, are inserted in the columns indicated, and the amount is ex- 

tended into the right-hand amount column. 

3. Note No. 4 above is paid in two instalments. Such entries may occasionally be made here ; but it will be found more conve- 
nient in practice, when a note is not paid at maturity, to 'charge it in account to the party we look to for payment at the 
same time writing it out of this book as we have done above with No. 10.— See notes 3 and 4, p. 62. Before we balance the 
bill account on the Ledger, * we must see that the difference between the two sides of it, and the difference between the two 
Bides of this book, agree. The above notes " carried down" 6 are the notes in hand at the time of balancing 

The left-hand amount column is footed and noted " forward" when it is filled, the amount appearing in the head of the same 
column on the next page "bro't forward." The righ^hand amount column cannot be carried forward until the spaces are 
all filled at the time of balancing. ^ 

* All notes which you endorse for accommodatioii may be entered In this manner in red ink; but they do not pass through th« 



4. 

5. 
6. 



books. 



48 



KECEIVABLE. 



WHIN DUK. 



1_ 


2 


8 

L7 


4 


6 6 7 8 


9 10 11 12 

1 " i 


24 












12 






1 


24 




11 




3 


; 1 


' : 



5 
5 

loi 



31 



12 



14 
15 

19 
22 



15 



20 



21 



28 



24 






21 



21 



28 



AMOUNT. 



600 
1000 
1500 
3000 
600 
1515 75 
800 
600 
2100 
300 
2000 
4444 
2011 
4500 
1200 
500 
400 
1340 
2063 
7000 
3000 
1200 
2000 
980 
I, 1000^ : 

45554 19 

1500 

3000 

1200 

2000 

980 



WHEN 



AND HOW DISPOSED OF. 



1867. 



Mar 17 
Jan. 24 

J mm .*J0 

Feb. 12 



Feb. 


12 


Apr. 


22 


Feb. 


6 


Jan. 


31 


June 


12 


Mar. 


16 


Mar. 


20 


Feb. 


28 


Apr. 


20 


Apr. 


5 


May 


18 


June 18 


May 


31 




31 


June 18 


May 


25 



Ree'd 6100, Ren'd $400, 
Rec'd in Cash and Mer., 

Cash $2000, Mdse. 81000 
Ren'd 6300, Lost §300, 
Rec'd in Cash, 
Discounted in City Bk., 
Discounted in City Bk., 
Rec'd in Cash, 
Charged to W. Hay, 
Collected by R. Morris, 
Sold to R. Irvin & Co., 
Rec'd in Cash, 
Passed to P. Nevius, 
Renewed for, 
Rec'd in Bill on Lond.. 
Ch'd to Profit & Loss, 
Ch'd to Estate of Lenox, 
Rec'd in Cash and Mer., 
Sold to C. Hartwell, 



AvoinrT. 



500 
1000 

3000 

600 
1515 75 

800 

600 
2100 

300 
2000 

4444 44 
2011 
4500 
1200 

500 

400 
1340 
2063 
7000 



j June 26 Endorsed &ret'd to Hay, 1000 

45554 19 



i n^Z ^V^ •!°.*®'" * °^*« °^ acceptance when received ? 
2. How when it is passed away ? t^v^eivea i 

6. How 18 this book continued from one page to another? 

* If you are re-entering these notes upon a new page, "carry foxward" will be the proper expression. 

49 



ii'ii 



r' 



m 



'<\ 



BILLS 



SATS OV 

ACCEPTANCE. 



NO. 



UEAWER'S NAJ«. 



1866. 

Nov. 

1867. 

Jan. 



Feb. 



Mar. 
Apr. 



lii 



ii' . ' ) 



13 
15 

n 



4 



f 







3Iay 
June 



1887. 

Feb. 

Mar. 
Apr. 

June 



|20 

Bl 

18 



IN WHOSE FAVOR. 



14 1 Myself, 



A.. Stuart & Co., 



2 Taylor on Myself, 

3 Myself, 

4 a 

5 If 

6 » 

7 f 

8 If 

9 u 

10 n 

11 IWorris, on Myself, 

12 Myself, 
,13 // 
114' n 

15 Taylor, on Sydney, 

16 Myself, 
117 II 

18 i n 

19 'I 



k 



yan & Dale, 
^V. Bayard & Co., 
papt. W. Rivers, 
|W. Morris, 
J. Warden, 
U. States, 



K 
If 



|R. Banks, 
JVV. Hay, 
Morris, 






fe. Coates, 

Walker, 

States, 
Wm. Hay, 
tV\^arden & Bell, 



'4 
10 
20 
18 



8 Myself, 

iiOj n 

12 n 

16 // 

17 " 
VJ 



p. States, 



// 



// 



W. Hay, 
J. Walker, 
U. States. 
Warden & Bell, 



ON 'WHAT ACCOUNT. 



Merchandise, 



nXX TO KOH. 



// 



5hip Hudson, 

is Note, 

is Note, 

erehandise, 
I .// 
!dorris's Goods, 

// 
R. Morris, 

[nsurance of ship Roscoe, 
■Shipment to Liverpool, 
R. Morris's Ship't to Bost. 
lonor of J. Taylor & Co., 

nsurance 2d Co. Ship't, 
duties 2d Co. Sales, 
Insurance for R. Morris, 
Purchase of Floiur, 



60 days. 

days, 
month. 
^ months. 
30 days. 
50 days. 
3 months. 

5 months. 
B months. 
IB months. 
ilO days' s'gt 
^ months. 
30 days. 

SO days. 
JLO days. 

6 months. 
6 months. 
2 months. 
60 days. 



VIerchandise, B months. 

piorris's Goods, 6 months. 

'nsurance of ship Roscoe, 4 months. 

nsurance 2d Co. Ship't, 8 months. 

uties 2d Co. Sales, 6 months. 

Purchase of Flour, 60 days. 



J\V'«— The directions respecting the Bills Receivable Book apply in all respects to this book. , „„^ „, ua 

The not^"SedTown'' are the notes wo have out unpaid, and, like the other Bill Book, must agree with the balance or ita 
representative in the Ledger, at the time of balancing. 



PAYABLE. 



WHBN 0U£. 



1 2 



16 

16 



18 



3 



L8 



5 



6 7 



4 

4 



8 



9 



28 



10 



11 12 



18 



3 

20 



4 
4 



AMOUNT. 



23 













300 

1000 
1600 
8000 

800 

600 
111111 

mill 
nil 11 
nil 11 

25001 

400 

16145 
4125 

601 

145 
3000 i 

112 80 ! 
1160 



WHEN 



1867. 



ANB HOW PAID. 



Jan. 



a6 



Feb. !18 



Apr. 
Mar. 



122 
4 



May 

June 
May 
June 
Mar. 

JuneiSO 
May I 8 



4 

30 

4 

30 

5 



:^65 fi4 



nil n 
iiiui 

400! 

145 1 
3000 ! 
1160 



Apr 

June 
June 
June 
June 



2S 

30 
30 
US 
30 



Pd. City Bank, 

If u 

Pd. in Cash and Mdse., 
Pd. in Cash and Mdse., 
Pd. in City Bank, 
Pd. in Merchants' Bk., 
Pd. the Custom House. 

1 1 Carried down, 
Pd. the Custom House, 
Carried down, 
Pd. in Mdse., 

I Carried down, 

!Pd. in Cash, 
Do. 

iPd. in Cash, 
CaiTicu aown. 
Do Do 

Pd. Insurance Co., 
Carried down, 



AJfOCXT. 



300 



$4865 44 



51 



50 



SET II.— DOUBLE ENTRY BOOK-KEEPING. 



SET II.— DOUBLE ENTRY BOOK-KEEPING. 



I p 

h 



THE CASH BOOK. 



. i 






CONCLUDING REMARKS ON THE BILL BOOKS. 

1. All practical accountants who have seen the principle upon which I have kept the 
Bill Books have given it their unqualified approbation. In the operations of some houses, 
the Bill account is nearly as heavy and voluminous as the Cash account, and there is no 
way in which accuracy can be so easily preserved or errors so readily found as upon the 
principle of balancing these books like the Cash Book. In a business where any consider- 
able number of bills or notes are received or given, this precaution appears to me almost 
indispensable for maintaining harmony between these books and their representatives in 
the Ledger. 

2. Although I have here only balanced them once, — at the time of closing the Ledger, 
— ^yet, in a business of any magnitude, it will be advisable to do so much oftener, at the 
same time balancing their representatives in the Ledger, or at least seeing that they con- 
form to these books, and also to the amount of Bills and acceptances in hand. Any dis- 
crepancy in this particular is a conclusive proof of error existing somewhere, which must 
be found out and rectified before you go farther. You will notice that those notes which 
have been renewed at the face — see Wallace's note, No. 15 — are not passed into the Ledger, 
neither are accommodation notes, such as that of William Hay's on the 26th June. You 
will not therefore expect the account in the Ledger to add up the same as this Book • but 
if every thing is correct it will conform to it in the balance. Cross accommodation bills, 
like Bills Receivable No. 7 and 8, where you have given a consideration for them — your 
own notes — must of course appear on your Bill Book like any other note. 

Another species of accommodation is when y.ou grant your signature as security upon a 
note or acceptance without any consideration, as in the case of Hay's note — see Bills Re- 
ceivable, June 26. I have recommended the entry of all such notes with their particulars 
and amounts in Red Ink. Such a practice may make the Bill Book a useful monitor to 
those who do much of this kind of business. 

3. I have before given directions — Note 3, p. 49 — respecting the payment of notes by 
instalments. The prevailing practice is to credit the Bill account with every instalment, 
however trifling, endorsing it at the same time upon the note. Notwithstanding its long 
established general usage, this practice is often attended with great inconvenience to the 
Book-keeper. A more fruitful source of confusion could hardly be devised. After getting 
u number of these partial payments upon different notes posted to the account, in any 
attempt to trace out errors afterwards, it will be found a perfect labyrinth. 

4. When a note is overdue, it ought either to be renewed or charged to the promisor in 
book account, and as he makes payments upon it pass them to his credit. Those who have 
been pursuing a different course will risk nothing by giving what I here suggest a trial. 



52 



INTRODUCTORY REMARKS. 

This book ^ is kept for the purpose of ascertaining every evening, or as often as is neces- 
sary, that all money received and paid has been kept account of. 

^ This is done by debiting this account for ^all money received, hence we find by the Dr. 
side the total amount received. When » money is paid out we credit this account, and 
thereby find by the credit side the total amount paid away. *And the difference between 
the amount paid away and the amount received must be the balance in hand. When the 
money in hand is counted it must agree with Hhe balance as shown by this book. Any 
difference is conclusive proof of error, which should be immediately sought out and an 
entry made to rectify it. 

All cash transactions are generally first entered ^upon this book, and afterwards trans- 
ferred to the Day Book, when Hhey are marked off this book upon the left hand side of the 
inoney column thus |/. But there is no objection to making the entry occasionally first on 
the Day Book and the collateral entry afterwards on this book. 

As the Cash Book is generally referred to ^as the book of original entry for all such 
transactions as are entered upon it, great care is necessary in making these entries. »Tbey 
should be made in such a manner as will enable any one afterwards to determine what 
aQcount was intended to be debited or credited for the money paid or received. For this 
purpose accountants adopt the following Rule : 

When money is received, ^» write the name of the account to be credited for it, next the 
date column on the left side,— the words of explanation on the same line a little to the 
right. 

When money is paid away, "write the name of the account to be debited for it, next 
the date column on the right side,— the words of explanation on the same line a little to the 
right. 

The Ledger titles are by this means kept in a perpendicular column, separated by a slight 
space from the explanatory words— refer to our cash book and see. By this arrangement 
no doubt can afterwards arise as to what accounts were intended to be debited or credited. 
And It adds much to the appearance of the book to begin these words of explanation all 
upon a perpendicular line, either by a fold in the paper or a pencil line. "Every thing 
except the dates and names of accounts must be kept to the right of this line. 

Nothing shows a man's ignorance of accounts more effectually than beginning his entries 
here with the title of the book - To Cash" or '^ By Cash.'' Nothing but cash is entered 
here, and that title is never written in the book except in the heading of it. 

The Bank account, check-book, &c., are exemplified in the second part of this work. 



Teachee's Examination.— 1. For what purpose is the Cash Book kept? 

2. What is placed to the Dr. side ? 

3. What to the credit side? 

4. How do we ascertain the balance in hand? 

5. What must the money in hand agree with ? 

6. Where are all cash transactions generally first entered? 

7. ^\hat is done with them when they are entered in the Day Book' 

8. For what [.iirpose is the Cash Book generally referred to? 

9. How should entries be made on this book ? 
^ 10. How is money received to be entered? 

11. How money paid ? 

lli. What is kept to the right of the perpendicular line spoken of? 

58 



II 

il 



Dr. 



1867. 

Jan. 



Feb. 



Alar. 






I 



Apr. 



lii 



; t; 



1 

3 
16 
18 
24 
30 
31 



6 
12 
25 



28 



1 
2 
5 

12 

17 

28 



20 



C^SH 



To Stock 

// Mdse. 

// James Carter 

// House 44 Broadway 

tf Bills Receivable 

// Wm. Hay 

If Bills Payable 



For Bal. on hand, per Ledger A, fol. 2 
Rec'd for sale to A. Stuart & Co. 
Rec'd amount of his % in full 
Rec'd of Carver a quarter's rent 
Rec'd of Banks on % of his note 
Rec'd on % 
Rec'd n/p. of Warden's note discounted 



10906.70 5ft 
6680. 



4226.70 



5 To Morris's Sales 



» Bills Receivable 

// // tf 

n R. Morris 

// Commission 

// Profit & Loss 

// Bills Receivable 

n Profit & Loss 

n Sundries 



Bal. bro't down 

Rec'd for sale to J. Lorillard 

Rec'd n/p. of Morris's note discounted 

Rec'd of T. Edwards on his note 

Rec'd n/p. of draft on Barclay 

Rec'd for collecting same 

Rec'd a purse found in the Park 

Rec'd for Baker & Fox's Bill 84444.44 

Rec'd 8^ per ct. prem. on same 377.78 

Rec'd of Warden on my Bill 




6462.70 



To Wm. Hay 
n Ship Hudson 
n Mdse. 

Ship Roscoe and Owners 

N. Y. Insurance Office 

Estate A. Lenox 

Bills Receivable 

Profit & Loss 

Mdse. 



Bal. in hand bro't down 

Rec'd on 1st Co. account 

Rec'd for freirh'^ 

Rec'd of R. Banks 

Rec'd for freight and passages 

Rec'd in full 

Rec'd deposit in Manhattan Bank 

Rec'd on J. Day's note 

Rec'd interest on same 

Rec'd of Wm. Hay bal. of Invoice 



34^1.90 
13020. 



11641.90 



To Bills Receivable 
n Profit L^ Loss 



Bal. bro't down 

Rec'd amount of Warden & Bell's note 

Rec'd 20 days' interest on same 



Forward 



7300 

300 

560 

150 

500 
1500 

596 i 70 



10906 ' 70 



4226 70 
360 I 



796 

2000 

1995 

5 

400 

4822 
2810 



40 



17415 



22 
16 



4K 



6462 70 

2500 

1850 

255 
1800 
3690 
7500 

100 
4 20 

500 



24661 90 



11641 

2011 

6 



13659 



90 
70 



60 



♦ Note. — ^The learner should place these figures in hia manuscript in pencil. 

64 



^OOOUNT. 



1887 

Jan. 



By Mdse. 
» Bills Payable 
» II II 

II House 44 Broadway 
II Ship Hudson 
// // 



Paid M. Hunter & Co. for Inv. of Flour 
Pd. my note to A. Stuart & Co. 
Pd. my acceptance for Taylor & Co. 
Pd. J. Carpenter's Bill for repairs . 
Pd. Capt. Rivers on % of purchase money 
Pd. disbursements 

Bal. to n/a. ^^ 



Feb, 



i By Mdse. 

1 II Morris's Sales 

5 



3Iar 



i3 



1? 



20 
25 



II II 

II M 

Shipm't to New Orleans 



n 
II 

II 

II J. Taylor & Co. 
// House in Broadway 
// Profit & Loss 
// R. Morris 
II Bills Payable 
// Morris's Sales 
// Bills Receivable 
// // // 

// Profit & Loss 



Pd. freight, per "Herald" 
Pd. // // // 

Pd. Cooperage, &c. on Wines 
Pd. freight of Wine to New Orleans 
Pd. freight, per "Jersey" 
Pd. // // // 

Pd. Insurance $200, Policy $1 
Pd. Insurance on Mdse. in Store 
Pd. on % of his Bill 
Pd. on my note to W. Bayard 
Pd. R. Banks for overgauged Wine 
Pd. J. Bowline on Bottomry Bond 
Pd. for Baker & Fox's Bill 4444.44'! 

Pd. 8 per cent. Prem. on same 355.56 
Bal. to n/a. 



Cr. 



1800 

300 
1000 

280 
2100 

1200 

41^ 

10906 70 



10952.78 



85 
167 

2S 

33 

11 

201 

181 

3400 

•20 

211 

2000 

4800 



78 



3 By Ship Roscoe, my J Pd. 



12 
16 
17 

25 
31 



Ship Roscoe and Owners Pd. 

Bills Payable Pd. 

" " Pd! 

Mdse. Pd. 

Estate A. Lenox Pd. 

" " Pd! 

House 49 Cedar Street Pd. 

1st Co. Sales Pd. 

Charlotte Lenox Pd. 

Robert Lenox Pd. 



Capt. Manly bal. of purchase 
disbursements 
my note favor W. Morris 
'I 11 II J. Warden 
freight of Cotton from New Orleans 
note in the Manhattan Bank 
for Law Expenses 
Insurance and Policy 
my half Invoice of Cotton 
her on % of Legacy 
him on % of Legacy 
Bal. t«» u/a. 18,020 



17415 48 



Apr. 



1 
5 

10 



15 



By Bills Receivable Pd. J. Walker in loan on his note 

// bhipm t to Liverpool Pd. Shipping charges 

" ^•Morris Pd. charges on shipment to Boston 

// John Taylor & Co. Pd. their draft on S. Wood & Co. protested 

II Sundries Pd. charges on 2d Co. shipm't to London 
// 1st Co. shipm't to Boston Pd. Shipping charges 

// Sundries Pd. charges on 1st Co. shipm't to Liverpool 

Forward 




4065 



55 



Ill 



;'i 



ri! 



'I ' 



i 



t Dr. 



1867. 



Apr. 22 To Bills Receivable 
// Profit & Loss 



May 



8 
13 

18 

25 



To House in Cedar Street 
// City Bauk Stock 

Merchant's // 

House 44 Broadway 

Ship Hudson 

Ship Roscoe and Owners 

Merchants^ Bank Stock 

R. Morris 

Mdse. 

2d Co. Sales 



// 



Profit & Loss 
Bills Receivable 
Profit & Loss 



June 



12 
18 



To Bills Receivable 
// // » 

n R. Morris 



O^SH 






60 


Bro't forward 




13659 


Rec'd amount of Wm. Hay's note 




1515 


75 


Rec'd interest on same 


15190.40 

8058.60 


5 


05 




7121.80 


.— 




1 


1 


15180 


40 


Bal. bro't down 




7121 


• 
80 


Rec'd a quarter's rent 




300 




Rec'd Dividend 




500 




Rec*d // 




250 




Rec'd Rent 




150 


• 


Rec'd Freight 




3500 




Rec'd freic:ht and passage money 


\ 


4200 




Rec'd of Finlay & Co. on % of sale 




500 




Rec'd of Walker bal. on my Bill of Exch. 


4200 




Rec'd of J. Walker h 3d Co. Adventure 


1500 


, 


Rec'd on % of sale to Warden & Bell 


1640 




Rec'd of Austin & Co. on Sales at Auction 


560 




Rec'd of W. Wallace, for interest 




18 


90 


Rec'd for Warden & Co.'s draft on Landis ' 


7000 




Rec'd 1 per ct. prem. on the same 


31510.70 
2724.92 


70 







28785.78 


31510 


70 
78 


Bal bro't down 


' 28785 


Rec'd of Warden & Bell, for their note 


2100 




Rec'd of J. Walker bal. due on note 




563 




Rec'd Insurance for loss per "Columbia" 


5452 


70 




36901.48 








28010.48 






^^ 


8891. 






36901 


48 


Bal. bro't down 


«891 



DIRECTIONS FOR RULINO. 

1. What are the lines called footing lines? 

2. How are they drawn under the longest column ? 

3. How are they drawn upon the other side, where there is a blank space in the money column ? 

4. What are the closing lines, and what is the use of them ? 

5. Where are they drawn? 

6. How far do you bring the balance below the closing line, and what must this balance agree 

with? 
The author has been thus precise in his directions in this matter, hoping thereby to inspire 
his learners with an early taste for neatness and uniformity in a matter which contributes so 
much to the appearance of their books, and which is of more importance in preserving accu- 
racy and order than many persons imagine. 

The directions here given apply to the Ledger, and all other books upon which balances are 
struck. 

56 



A.OCOUN'T, 



Or. 



1867. ; j 

I I 

Apr. 20 By 2d Co. Sales 
22; // Sundries 
23; // Bills Pciyable 



Bro't forward 

Paid Freight, &c. per ''Vixen" 

Pd. on my note to Capt. Rivers 

Pd. my acceptance for honor of Taylor & Co. 



8058.60 



May 



4' By Bills Payable 
8 // // // 

31 // R. Morris 



Pd. my bonds in the Custom House 
Pd. my notes to the Insurance Office 
Pd. charges on shipment per '• Columbia" 



4065 


55 


185 




3207 


05 


601 




15180 


40 


0999 


22 


202 


7C 


300 





2724.9a 



June 12 ByR. Morris 



18 

25 

28 
30 






It 
II 



Warden & Bell 
Bills Receivable 



Pd. for Bank's Bill of Exchange 

Pd. them on % 

Pd. for J. Post's Bill on London 

Pd. for Sugars sold to G. Barron 
1st Co. Sales Pd. Wm. Hay his half net proceeds 

House 49 Cedar Street Pd. Carpenter & Co.'s Bill of Repairs 
Profit & Loss Pd. Expenses 1st Jan'y to date 



// 



i> . 



31510 


70 


7200 




10000 




1660 




i 800 




6971 


25 


s 280 




1099 


23 


28010.48 

. ' 1 




36901 


48 



1. The footing lines are those drawn under the amounts before adding up. 
-. Ihey are drawn close under the foot of the column. 

3. Directly opposite the line footing the longest column, touching the same line lightly inside 
the date column. ^ j •» 

t. The closing lines are those drawn after the columns are added up, to keep the old account 
separate from the new account. 

D. They are always drawn on the first faint line below the figures, touching it lightly inside 
the date columns, and doubling across the money columns, but never runnin- throu-h 
the date columns. ° *= 

6 The balance brought down always occupies the first faint line below the closin- line and 
a must always agree with the cash in hand and the balance of the cash account in the 

57 



'.■V 



'■I 



.li> 



li ; 



|l 



SET II.— DOUBLE ENTRY BOOK-KEEPING. 



THE INVOICE BOOK. 



PRELIMINARY REMARKS. 

In this book * we enter copies or abstracts of all invoices of goods received on our ow/i 
account, on account of others, and on account of ourselves and others in company. 

This is the general practice among merchants, but the author has found it more con- 
venient in extensive business ' to paste the original invoices into a book made of some 
description of paper of a larger size than the invoices. By means of an index to this 
book, it will be found more convenient to refer to the original invoices than by seeking 
them from files. 

The first entry of an invoice ' may be either here or on the Day Book, but when it is 
entered oh the Day Book, each entry should be marked off" this book as we have done on 
the following page. 

Exporters sometimes use an "Invoice outward book," but we have shown that 
nvoices of this kind as well as inland invoices may be entered on the Sales Book. 

The parciculars of an invoice need not be entered on the Day Book. * The amount only 
Is required. 

We have not considered it necessary to extend this book through the whole set ; most 
learners will easily learn its nature and use from these remarks. It will seldom be necessary 
to transcribe the book. 

As far as our exemplification of this book extends, the learner will find its examples all 
in connexion with the Day Book. 



Inventory of Merchandise on hand December 31, 1866. 



D. B. 1. ! 300 pieces best 44 London Chintz Prints 



100 
8 

100 
50 
50 



// 27 inch Furniture Prints 
French Cambric Handkerchiefs 
India Pongees . 



ff 



II 



II 



II Bandannas 



Figured 



20 Canton Crape Shawls 



@$ 4. 

@$ 3. 
@$10. 

(«) $ 6. 

@$ 7. 

@S 7. 

@$ 6. 



1200. 
300. 
80. 
600. 
350. 
350. 
120. 



D. B. 1. 



PD 

1 to 24 



Invoice of 24 Bales Cotton shipped by J. Taylor & Co. on board 
the Brig Jersey, Spencer, Master, for New York, and consigned to 
P. Duff", Merchant, by his order and for his account and risk. 



1.450 4.420 7.390 10.410 
2.400 5.430 8.380 11.450 
3.410 6.500 9.410 12.500 



13. 560 16. 580 19. 550 22. 510 
14.540 17.500 20.590 23.540 
15. 520 18. 500 21. 500 24. 560 



1260+1350+1180 + 1360 + 1620 + 1580 + 1640 + 161o" 

= 11600, @ 8 cents. 



CHARGES. 



Commission purchasing $928 @ 21 per cent. 

Cartage, &c 

Freight and Insurance .... 

E. E. New Orleans, 
Dec. 10, 1866. 



S23.20 
1.80 
47. 



i 



J. Taylor & Co. 



D. B. 1. 



Mr. p. Duff, 



New York, Jan. 3, 1867. 

Bo't of Martin Hunter & Co. 
400 bbls. Superfine Flour @ §4 50 

Bec'd Payment, 

Martin Hunter & Co. 
Per J. Manly. 



1. What is the use of this book? 

2. How may invoices be most conveniently kept for reference? 

3. Where is the first entry of an invoice to be made ? 

4. How is an invoice to be entered upon the Dav Book? 



58 



D.B.I. Mr. p. Duff, 



No. 1444. 1 ps. 24? 
// 1448. 1 // 25? 



Bo't of Walter Bayard & Co. 



1 1450. 1 // 19? j 

ooon -. — '^^ y^^- ^^P®^ ^0^^ ^^^^^ Broadcloth, @ $ 8. ' 

» ^280. 1 II 25 yds. Super Blue Broadcloth . . w 8. 

D. F. 2 II finest Saxon Flannel . . . . // 20. 

F. 80 // Common /' 10. 

Bec'd Payment, 
„ ^^ By Note @ 1 month, 

New York, Walter Bayard & Co. 

January 15, 1867. 



3000 



928 



72 



1000 



1800 



560 

200 

40 

800 

1600 



59 



Mr. P. DUFF, 



'!il 



1; 



li ' 

I! 



1 1 



!l|? 



I 



ill' 



Bought of JAMES CARTEK. 



D. B 2. 



D. B. 2. 



P. D. 
N.Y. 



P. D. 
R. M. 



1 ps. 20? yds. Super Black Broadcloth 
1 // 20? II II Brown // 
1 Dress Coat .... 

New York, Jan. 20, 1867. 



@ 85. 102.50 
M 4. 83. 
# 14.50 



Mr. p. Duff, 

Bo't of C. Banks, 

100 bbls. Genesee Superfine Flour . . . • . @ 85. 

Rec'd Payment by my note due this day, 

C. Banks. 

New York, Jan. 24, 1867. 

If ■ — 

Invoice of Merchandise shipped by R. Morris on board the Ship 
Herald, Chase, Master, for New York, by order and for account and 
risk of P. Duff, merchant there. 
4 Packages, No. 1 to 4. 

No. 1, contiining 50 pieces, 3000 yds., Figured Satins . @ 5s 

600 // Rolled Jaconets . . // 5s. 

600 // Fancy 2-color Fur. Prints . n 10s., 
600 /' '/ 5- // // . II 20s. 

CHARGES. 

Commission, 5 per ct. on £1800 ..... £90. 



200 



500 



/, 2, 
// 3, 
" 4, 



// 
// 



Export duty and entry, £12 10s. Cartage, Wharfage, and 
Lighterage, £8 10s. ....... 

Insurance and Policy ....... 



21. 

89. 



£750 
150 
300 
600 



200 



Amount due in Cash April 10th next, sterling 
In Federal currency, $8888.88 

London, Dec. 30, 1866. R. Morris. 

ft 



£2000 



Invoice of 30 Pipes Port Wine, shipped by R. Morris on board 
the Ship Herald, Chase, Master, for New York, consigned to P. Duff, 
merchant there, for sale on account of the shipper. 

30 Pipes, 3600 galls.. Best Old Port . . @ 10s. £1800. 

CHARGES. 

Export duty, entry, &c., £44 10s. Cartage and 



Wharfage, £11 10s. 
Insurance and Policy 
Cooperage, Lighterage, &c. 

London, Dec. 30, 1866. 
Mr. p. Duff, 

(Terms, 3 mos.) 

20 ps. 400 yds. 10-4 Damask Table Linens, 
4 // 54? // 12-4 // u 

3 // 40? 11 8-4 // n 



£56. 
96. 

48. 



200. 
£2000. 



R. Morris. 



Packing-box 



Bo't of William Hat, 

. @ $3. 81200. 
II . . // 4. 218. 

II . . II 2. 81. 



New York, Feb. 12, 1867. 

Mr. p. DyFF, 

200 bbls. Genesee Flour 
New York, Feb. 18, 1867. 



1500 



Bo't of T. Edwards, 

. @ $5. 



1000 



60 



Inventory of Merchandise on hand June 30, 1867. 



2423 Barrels Flour (^85. 


12115 




6 Pieces, 240 yds., Brussels Carpet 








. H 1.50 


360 




70 // Merrimac Prints, 








. II 3. 


210 






40 II II Furniture . 








. '/ 4. j 


160 




! 420 II English Prints . 








. ff 5. 


2100 




365 // // Furniture 








n 6. 


2190 






8 // 161 yds. Fine Broadcloth . 








. w 6. 


966 






1 // Fine Saxon Flannel . 








> • • 


11 


62 




1 II Scarlet ii 








• • 


15 


60 




Entered Ledger, ^olio 1. . 








• 


18128 22 



CONCLUDING REMARKS. 

1. In business the Inventory generally makes a pretty long document, but the above will 
sufficiently explain its nature, and a reference to it will serve to explain the balancing of the 
merchandise account in the Ledger. 

2. Teachers who use treatises on Book-keeping which give no example of the inventory 
of the merchandise on hand at the opening and closing of the Ledger, will find it a difficult 
task to make the closing of the merchandise account fully understood. A learner who has 
never seen an inventory, will form so vague an idea of it from a mere verbal description, 
that he will probably forget even the name of it before he has balanced his account. But 
give him an exemplification of it, and he will ask no more questions about it. 

3. I would suggest that the inventory be always taken as near the cost and charges of the 
goods as possible. Having it upon this principle enables us, as we have shown, — Note 15, 
page 36— -to ascertain the average gain per cent, upon the amount of goods sold, which 
is at all times an important matter for the merchant to know. But I shall perhaps be told 
that taking the inventory upon this principle will, in some instances, produce a false result 
in the balance sheet. I admit that in some cases it will. But take it upon any principle 
you please, and it is only an estimated value. The actual value can only be determined by 
sale : and as a general rule the cost and charges form a pretty correct estimate for the bal- 
ance sheet. But if circumstances render it necessary to deviate from this rule of estimate, 
I would still, for the purpose above referred to, take the account upon the same principle' 
and afterwards let an estimated deduction or addition be made to it for the balance sheet. 

4. On the last page there are two invoices from Morris. The first is on our own account, 
and the second on consignment. The learner will perceive from this that there is not, in 
general, any use for a Commission Invoice Book. Such a book is only required in a 
few of the most extensive commission houses. All invoices of goods received may be 
entered upon this book. When the business is extensive, an index will be found useful. 

61 



1*4 






'itl 



SET II.— DOUBLE ENTRY BOOK-KEEPING. 



THE SALES BOOK. 



PRELIMINARY REMARKS. 

The purpose of keeping this book * is to avoid entering the particulars of long invoices 
upon the Day Book. 

In extensive business the full particulars of every sale ^ are first entered on this book, 
and the amount afterwards transferred to the Day Book, when it is marked off this book as 
we have done on the next page. 

By referring to our entry of the 12th February, it will be seen that invoices outward may 
be entered here as well as inland ones. 

In a limited business the ' Day Book serves for entering all sales upon : in this case the 
Sales Book is dispensed with. 

The following exemplification extends only through two months of our Day Book. But 
this will be found quite sufl&cient to explain its use, and it is so easily understood that the 
learner will hardly find it necessary to transcribe it. 

In a very extensive businoss there is often a Sales Book required in each department, in 
which the salesman in that ;'. jpartment enters all his sales. From hence it is transferred 
afterwards to the Day Book or to the Journal by the bouk-keeper. 

It may be proper to observe here that the Journal may be composed direct from the aux- 
iliaries without passing the entries into the Day Book. By this course a considerable 
amount of writing is saved. But the author will not attempt the explanation of that 
method of journalizing in this Set, the object of which is to make the principles of the 
science thoroughly understood by the simplest and most efficient plan of teaching, leaving 
details that would embjirrass the learner and hinder his teacher to be explained hereafter. 

Persons who are unacquainted with the labors of the class-room, generally form but an 
imperfect idea of the nature of the teacher's task in first inducting the uninitiated pupil 
into the science of accounts. It is sufficiently difficult when the entries are all arranged 
for journalizing in the Day Book, but let the pupil's attention be divided between the Day 
Book and some five or six auxiliaries, and the matter becomes infinitely more difficult and 
perplexing. We have tried this plan of teaching. These remarks are therefore dictated 
by experience. 

This plan of journalizing will, however, be found fully explained in the second part of 
this work, where, after having fully mastered the principles of the science, the pupil can 
understand and apply them with all desirable ease. 



1. What is the object for keeping the Sales Book? 

2. When this book is kept, where are the particulars of each sale first entered? 

3. When no Sales Book is kept, where are the particulars of the sales first entered? 



62 



NEW YORK, January 3, 1867. 



D.B.I. 



D.B.I. 



Sold A. Stuart & Co., for Cash— 
20 pieces London Prints 
10 II plain Pongees 
10 II figured . 
10 II Merrimac Prints 



10. 



Sold Thomas Edwards, on his note @ 30 days — 

400 barrels Flour 

200 pieces London prints . . . . 



t$5. 
88. 
@S9. 
©83. 



@S5. 
@ $5. 



100 
80. 
90. 
30. 



2000. 
1000. 



D. B. 1. 



Sold James Carter, on account — 
3 hhds. Sugar, viz. 1204, 1196, 1100 = 3500ib. 

Tare 10 per ct. . . . 350 3150Jb @ 8c. 252. 
50 pieces Merrimac Prints , . . . . @ $4. 200. 



15. 



D. B. 1. Sold Henry Pryor, in payment for James Carter's order on me- 



6 pieces Flannel 

2 yards fine Broad Cloth 



@ 815. 
89. 



90. 
18. 



D. B. 1. 



16. 



D. B. 2. 



D. B. 2. 



Sold James Carter, on account — 
100 barrels Flour . 
10 II Corn Meal . 
15 // Rye II 
5 // 



Herring 



@S5. 
@83. 
@83. 
@85. 



500. 
30. 
45. 
25. 



19. 



J. T. & 
Co. 



Sold James Carter, on account 

4 pieces fine Blue Broad Cloth, 19?, 20, 20?, 20 = 80 yds., @ $5 

Sold Capt. Rivers, in part payment of the Ship Hudson — 
240 barrels Genesee S. F. Flour ... ^5 

60 hhds. N. 0. Sugars, 71,1111b 

Less Tare 10 per ct. 'y 11 Net 64,000ib @ 6 J, 
10 chests H. S. Tea . T Net 10001b @ 70, 

relb.l2. 



1200. 

4000. 
700. 



Invoice of Cloths, Silks, &c., shipped on board the Brig Jersey, 
Spencer, master, for New Orleans. Consigned to J. Taylor & Co., 
for sale on my account — 

20 pieces, 1200 yds., Figured Satins . . @ $1.50 81800. 



4 
8 
20 
4 
3 



// 
II 
II 
It 



80? 
160 
400 

54? 

40? 



// 
II 
II 
It 



Best Black Cassimere 
S. W. Black Broad Cloth 
10-4 Damask Table Linen 
12-4 // II n 

8-4 // «r # 

CHARGES. 




Packing Boxes 84.50, Cartage 81 
Freight and Insurance 

I 

:E. E. New York, ") 
I 12th Feb., 1867. | 



85.50 
27.50 



161. 

800. 

1200. 

218. 

81. 

4260 
33. 



300 



3000 



452 



108 



600 



400 



5900 



4298 



P. Duff 



63 



i' 



I( 



Invoice of Tea shipped by the Brig Jersey, Spencer, master, for New Orleans, 
and for account and risk of J. Taylor & Co., and to them consigned. 



bv order 



J. T. & 
Co. 



10 chests H. S. Tea, wt. 
Tare . 



9151b. 

115 Net 8001b @ 75 



$600. 



CHARGES. 



Cash Paid Freight and Cartage .... 
Comm'n 5 per cent, on S600 . . .30. 
Comm'n h per cent, for effecting Insurance 3^ 

E. E. New York, 
12th Feb., 1867. 



) 



$11. 
33. 



P. Duff. 



44. 



644 



18. 



Sold R. Banks, in part payment of R. Morris's draft on me in his 
favor — 

40 barrels S. F. Flour @ $5. 

// 
Sold W. Bayard & Co., in part payment of my note due this day — 

100 barrels fine Flour @ $5. 

28. 

The following articles were destroyed by fire in my store in Front 
Street, yesterday : — 

100 barrels Corn Meal Cost S3. 300. 

2U0 // Rye Flour '' $3. 600. 

300 // Wheat // $4. 1200. 

Amount of Damages upon Sugars and other goods, 

agreed upon by the appraisers ... . 1590. 

I Amount claimed upon my policy, and admitted by 

the Insurance Office ........ 



200 



500 



3690 



This entry marks out the course that we would in general recommend in case of loss by 

fire, particularly in a partial loss. In some kinds of business it is often found more difficult 

to prove the loss and damage, than inexperienced persons generally imagine. Although the 

author has nothing himself to complain of in his past transactions with insurance offices. 

enough has come under his notice to convince him that the greater part of insurers do not 

sufficiently study the terms of their contract as embraced in their policy. Every office has 

a form of policy of its own, and these forms are so various, and sometimes so worded, that 

it is very difficult to make out how you are to proceed in case of loss, or indeed whether 

you can maintain an action at all upon the policy. Unless the nature and position of the 

property are very accurately described, a part, or even the whole of it, may fall without the 

scope of the policy ; for every condition inserted in that instrument, either in the printed 

proposals or in writing, are parts of the contract, and must be strictly and literally observed. 

A person of our acquaintance once insured his goods in the first and second floors of the 

building, the only parts he then occupied. He either did not notice the terms of his policy, 

or forgot its restriction to these particular parts of the building, and afterwards removed a 

great part of his goods to the cellar and the third floor. A fire afterwards occurred, and 

he could recover nothing upon his loss in the cellar or the third story. In another case the 

insurer accepted of a policy in which was inserted the condition, that in case of loss the 

money was not to be payable until the insured produced a certificate of character frorii the 

minister of the parish. It was afterwards decided that he could not recover, although the 

minister wrongfully withheld the certificate ; for it seems to be a settled legal maxim, that 

if you undertake for the act of a stranger you must see it done. 

Although these remarks do not strictly belong to our subject, yet they cannot be far out 
of place in connection with the last transaction recorded in our Sales Book. They may, at 
leastj serve to put the young and inexperienced upon their guard in entering into these 
important contracts. 

64 



COMMISSION SALES BOOK. 



INTRODUCTORY REMARKS. 

This book ^ is only required in extensive commission warehouses. It is kept in folios • 
to the Dr. side are placed the particulars of all charges attending the sales: » and at the 
Cr. side the particulars of each sale. When the goods are all sold * the account is debited 
lor the net proceeds, which is at the same time carried to the credit of the owner or to the 
credit of cash if you pay him at the time you render account sales. The form of this 
account will be found among the mercantile forms — p. 117. 

All the entries of both sides this book pass regularly to » the Day Book frefer by tht- 
dates and see) and are then marked off" this book in the manner we have directed in the 
Cash Book. — Note 7, p. 53. 

In a limited commission business, « the sales of each consignment, as well as the charges 
attending it, may be entered at once upon the Day Book without a sales book : and when 
an account sales is required it can be readily made out ' by reference from the sales account 
in the Ledger to the Day Book. 

There can be no entry of the invoice of a consignment upon this book. That must be 
21 to 28''^'''' ""^ ^''''^ only.«-See Invoice Book, p. 60: also Rule 10, Questions 

In the second part of this work will be found another method of keeping consignment 
accounts : but the principle is essentially the same as this. The sales of Merchandise on 
acct. of ourselves and others in company is kept also upon this book » in all respects as we 
have just described for the sales of others. f a wc 

The Order Book is used for entering orders received for goods. It is so simple that I 
^1°^^^^^^ ^* necessary to give an exemplification of it 

..^A ^Y^^^l ■^^''?' ^' ^^'"^ ^"^ improved form of Check Book, will be found in the 
second part of this work. 



TEACHERS EXAMINATION. 



1. When is this book required ? 

2. What is placed to the Dr. side? 

3. What at the Cr. side? 

4. What is to be done when the goods are all sold? 

6. To what book are the entries of this book transferred? 



E 



6. How may the sales be kept in a limited commission busi- 
ness? 

c" ?v^ ^^^ *^® account sales be made out in this case? 

8. W hat is done with the invoice of a con.signment ' 

9. How is the sales of Merchandise on account of ourselvat 

and others in Co. to be kept ? 



65 



i 



Dr. 



SALES OF WINES SOLD BY OEDER AND 



FOE ACCOUNT OF E. MOEEIS, LONDON. 



Cr. 1 



1867. 

Feb. 



Mar. 



5 
12 



20 



12 



1 For my two bonds passed to the Custom House, viz. : 
one at 3 months, for . . .1111.11 
one at 6 , // " • • • im^l 

For Cash paid freight and primage 
// H II for gauging .... 
;/ II II for carting and cooperage 
H u /r for cartage, freight, and insu- 
rance on 10 Pipes Wine consigned to 
J. Taylor & Co., New Orleans . 
u Cash refunded R. Banks, 6 galls, 
gauged Wine sold 18th inst. 

n Storage .... 

// Advertising .... 
u Commission on $12,120, @ 5 per cent. 

• n/p. to R. Morris's credit due by average, May 2* 



1M7. 

Apr. 



20 



May 18 



J^ 



II 



ii, 



over- 



2222 22 

167 78 

1 50, 

3 50! 



28 



8068 



1. We find the entry of this and all the others on the 
Day Book by their respective dates. 

2. This is found by deducting the charges from the 
total sales. See small figures in the margin. 

3. The entries are generally first made here and after- 
wards transferred to the Day Book, when they are 
marked oflF this book thus {/ to show how far the 
transfers have been made. There is no objection, how- 
ever, to making the first entry of some of the transac- 
tions on the Day Book, and the corresponding entry 
afterwards here. 



Sales of 40 Bales Brussels Carpeting for the Joint 
For Bonds passed to the Custom House for duties 



Paid freight and primage per " Vixen 
// Insurance against fire, and policy 
// Cartage . . . • • 

For Storage, $3; Advertising, $10 . 
Commission 2\ per cent, on $15874 

R. Morris's J net proceeds is 
J. Taylor & Co.'s do. 
My do. 



II 



II 
n 
If 



150. 
33. 
2. 

8BMJ6 



Note.— The learner will find forms of the account sales of both the abore j 
consignments among the Mercantile Forms at the end of the Ledger— pp. ; 
117 and 118. 

* The rule for finding this average time is given on the next page. 



1887. 

Feb. 



9 



21 




3 


50 


14 


50 


606 









2444 

624 

9052 
12120 



12 



Mar. 



18 
12 



3000 



1887. 

May 



3185 



185 

13 I 

396 85 409 85 

4093 05 

4093 05 

4093 05 12279, 15 

15874 



13 
18 



Sold for cash to J. Lorillard, 

1 Pipe, 120 galls.. Port Wine . . @ $3. 
Sold Wm. Park on his note @ 4 mos. — due June 12, 

5 Pipes, 600 galls., Port Wine . . @ $3.50 
Sold to W. Bayard & Co., as cash, this day, 

3 Pipes, 360 galls.. Port Wine . . @ $3. 
Shipped to New Orleans, per Brig Jersey, and consigned 

to J. Taylor & Co., for sale on account of Morris's 

Sales, 10 Pipes Port Wine, 1200 galls., invoiced at 

$3.50 per gallon.* 
Sold to R. Banks, as cash, this day, 

2 Pipes, 240 galls., Port Wine . . @ S3 50 
Rec'd for n/p. of the above consignment to J. Taylor 

6 Co., Barclay & Co.'s Acceptance @ 60 days, due 
May 14, for 

Taken to my own acct. at market prices, the remaining 
9 Pipes, 1080 galls., @ $3, @ 60 days, due May 14 



12120. 

3068. 

9052. 



TEACHER'S EXAMINATION. 

1. How do you find the entry of this upon the Day Book ? 

2. How is the net proceeds found? 

3. Are the entries first made here or first on the Day Book? 

* No fexther entry can be made of this, it being a re-consicnment, until 
returns are received— See March 12. t> "> """* 



Account of E. Morris, J. Taylor & Co., and myself, each h 

Sold to Warden & Bell for draft on New Orleans, 
120 pieces, 4250 yards, . . . @ $2. 

Net proceeds of 55 pieces sold at Austin & Co.'s auc- 
tion 

Taken to my own account, 

55 pieces, 1907 yards, . . . @ $2. 



15874. 
3594.8S 



H. P. 3^12279.15 
4003.06 



I 



4500 
3240 



360 
2100 
1080 



840 



l- 



7740 
12120 



3560 

3814 



8500 



7374 



16874 



G6 



67 









u 



SET II.— DOUBLE ENTRY COMMISSION SALES BOOK. 



CONCLUDING REMARKS ON CONSIGNMENTS. 

1. As the average time upon which the sales of a consignment will fall due is almost 
always required, the accountant must be prepared to work out the solution promptly and 
accurately. A course of practical exercises will be found hereafter under the head of 
Commercial Calculations. We subjoin the solution of the preceding sales. The following 
is the 

2. Rule.— Multiply each sum by the time that intervenes between its maturity and that 
of the first sum due. Divide the sum of these products by the total amount of salee, the 
quotient is the equated time counted forward from the day upon which the first sum 
&lls due.* 

Let us illustrate this rule by the sales on the last page. Three days of grace are allowed 
upon all notes and acceptances, but no grace is allowed upon cash sales or sales on Book 
account. 



SOLD. 

Feb. 5. 


vox. 
Feb. 5. 


DATS. 

$360. X 0. 


9. 


June 12. 


2100. X 127, — 266.700. 


9. 


Feb. 9. 


1080. X 4, — 4.320. 


18. 


18. 


840. X 13, — 10.920. 


Mar. 12. 


May 14. 


7740. X 98, — 758.520. 



^ 



12,120. 



)l,040,460.(86days: 



Gives 86 days, nearly, to count forward from Feb. 5, making the sales fall due by average 

May 2. 

Fractional parts of a day are never counted, unless the fraction amounts to a half day or 

upwards : it then counts another day. 

3. As inexperienced persons are apt to mix up consignments, charges, and advances upon 
the consignments all into one account, I must again direct particular attention to Rule X., 
page 41. I have there marked out the course for conducting these accounts, sanctioned by 
the most experienced accountants. A regular account of sales drawn out upon this plan 
enables the owner of the consignment to see what the adventure has produced him, and thus 
determine at sight his gain or loss by the speculation. This will not be shown by your 
account, if you mix up advances and other matters in it. 

4. When consigned goods are retailed, it is hardly possible to keep a detailed account of 
each sale. You may, in such cases, credit the sales to your own merchandise account; and 
when the account sales is required, the difference between the quantity received and tHp 
quantity on hand, will be the quantity sold, for which render account sales, closing the sales 
account, and entering on the Invoice Book the articles on hand when this account was 
rendered. 



* Pkoof — MolUply each sum by the time that intervenes between its maturity and that of the last sum falling due. Divide 
the sum of these products by the whole amount of sales, the quotient is the equated time codntino back from the day upon 
which the latest sum falls due. 

68 



DOUBLE ENTEY BOOK-KEEPING. 



DAY BOOK AND JOURNAL. 

SET II. 



PEELIMINARY DIRECTIONS TO TEACHERS AND LEARNERS. 

-The opening Day Book entry of this set is drawn from the » balance account of the pre- 
ci iing set. By referring back to it, and attentively comparing it, the learner cannot fail 
to obtain a distinct conception of the process of opening new books from old ones, — an ope- 
ration seldom well understood by young book-keepers. 

He must also understand that the cash in hand 'must be entered in the Cash Book. 

The Merchandise on hand 'must be entered in the Invoice Book. 

The Notes and Bills in hand *must be recorded in the Bills Receivable Book. 

The Notes and acceptances he has outstanding «must be recorded in the Bills Payable 
Book. "^ 

The teacher will now follow the directions given on page 27 for inducting his pupils 
thoroughly into the language and form of the journal. Those who patiently submit to that 
course will seldom experience any difficulty after the first one or two pages. Students will 
also find it a useful exercise to give verbally, the journal entries to be made in their books 
by each of the persons named in our entries. 

As some business men require their journals to embody brief explanations of their trans- 
actions, I have journalized the month of May in this manner as a specimen. But I have 
not given the whole journal upon this plan, because, in his incipient steps, every thing that 
takes his attention off the Ledger titles has a tendency to perplex and embarrass the 
learner. 

We have adhered to that form of Journal in most general use, and it is to be observed 
that it IS a form, the practice upon which, prepares the student for using any other without 
difficulty. 

It will be found useful to have some copies of the text-book prepared with blank paper 
pasted over all the Journals. From these books require each pupil, in turn, to journalize 
all the Day Book entries of the month upon the black-board, before writing them in his 
books. This compels them to study each lesson well mentally before attempting to write it. 
It the learner does not wish to cheat himself out of thorough instruction, he should never 
copy any part of the printed Journal. 



1. Where do we obtain the materials for openinjr this set of 

books? 

2. What is to be done with the cash in hand? 



TEACHER'S EXAMINATION. 



3. What with the Merchandise in hand ? 

4. What with the Notes in hand ? 

5. What with our own Notes in circulation ? 



69 



11;:' 












«tM 



NEW YOBK, January 1, 1867. 



'Inventory of my Effects "^ Balance account, Ledger A. fol. 3. — 
Mdse. in hand . . . ^ Invoice Book, p. 1. $3000. 
Cash in hand .... Ledg. A. fol. 2. 7300. 

Due me on notes . . . f Bill Book, p. 1. 3000. 

William Hay owes me . . Ledg. A. fol. 2. 8000. 

House and Lot 44 Broadway # ir 8. ''^.^A^^- '' ^^^^^ 



'Debts owing by me '^ Balance account Ledger A. fol. 3. — 

Due on my notes ^ Bill Book, p. 2 300. 

Due Warden & Bell .... Ledg. A. fol. 2. 500. 
// R. Morris, London, due 31st ult. . u it 2000. 



3. 



Sold A. Stuart & Co. for Cash — 
Mdse. ^ Sales Book, p. 1. 



n 



•Received *^ Brig Jersey, Spencer, Master, from J. Taylor & Co., 
New Orleans, for my acct. — 

24 bales Cotton, ^ Invoice Book, p. 1 

Accepted their draft on me for amt. of the Invoice in favor of 

Ryan & Dale, @ 10 days' sight, $1000. 



// 



Bought for Cash of Martin Hunter & Co., Flour ^ I. B. 1. 

::==:==^ 10, ======= 



Sold Thomas Edwards, on his note @ 30 days, Mdse. '^ S. B., p. 1. 



Sold James Carter on account, Mdse. "^ S. B., p. 1. 
====== 15, == 



Bought of Walter Bayard & Co., on my note @ 1 month, Mdse. 

J.. J5. J.. .....••••• 



•Paid James Carter's order on me in favor of H. Pryor, in Mdse. 
•f Sales Book 1 

=================== 16. ===========================^ 



* Received from James Carter Cash in full 

___ H 



*Paid Cash in the City Bank for my note in favor of A. 

Stuart & Co. ........ 300. 

Also, my acceptance of J. Taylor & Co.'s draft in favor of 

Ryan & Co . . • . . 1000. 

If 



Sold James Carter on account, Mdse. *^ Sales Book 1. 



1. T<m may joonudize direct from the old Balance account without a Day Book entry, thus:— 

Sundries Dr. To Sundries, $31,300, 
per Balance account, Ledg. A. f. 3. 

Mdse 3000. 

Cash 7300. 

Bills Receivable 3000. 

William Hay 3000. 

House and Lot 44 Broadway .... 15000. 

To Bills Payable 300. 

" Warden & Bell 500. 

" R. Morris 2000. 

" Stock 28500. 

2. We do not here credit Taylor & Co., because we have accepted their draft for the amount, 

3. We have paid Carter's order upon us, he therefore gets in debt to us. 

4. When a person pays us in full, we ought to close his account. — See notes 5 and 6, page 23. 

5. Neither the Bank nor any of the parties named here are to be debited, because they do not 

get in debt to us. 
As the entries are journalized they should all be marked off this book, as in the margin of 
the first entry above. 

70 



2800 



300 



1000 



1800 

3000 
452 

1600 

108 
560 



1300 
600 



1 
1 
2 
3 
3 
4 

1 
4 
5 
5 

2 
1 

1 

4 

1 
2 

3 

1 

5 

1 

1 
4 

5 
1 

2 
5 

4 
2 



NEW YORK, January 1, 1867. 



* Sundries, Dr. to Stock . 

Mdse 

Cash .... 

Bills Receivable 

Wm. Hay 

House and Lot 44 Broadway 



31300 



3000 
Ledger A. fol. 2.* 7300 

1. 3000 

2. 3000 

3. 15000 



It 



It 
u 



' Stock, Dr. to Sundries . 
To Bills Payable 
// Warden & Bell 
// R. Morris, London 



2800 



Ledger A. fol. 2. 










2, 



3. 



Cash, Dr. 
To Mdse. 



Mdse., Dr. . 
« To Bills Payable 



Mdse., Dr. . 
To Cash . 



10. 



Bills Receivable, Dr. 
To Mdse. . 



James Carter, Dr. . 
To Mdse. . 



16« 



Mdse., Dr. . 
To Bills Payable 



* James Carter, Dr. . 
To Mdse. . 



16. 



Cash, Dr 

* To James Carter, to close acct. . 

^ Bills Payable, Dr. . 
To Cash . . . . 



James Carter, Dr. . 



300 



1000 



1800 



3000 



452 



1600 



108 



560 



1300 



600 



To Mdse. . 



300 

500 

2000 



300 



1000 



1800 



3000 



452 



1600 



108 



560 



1300 



600 



TEACHER'S EXAMINATION. 



1. Cannot these two entries be made direct from the old Balance account? 

2. Why not credit Taylor & Co.? 

3. Why debit Carter for this amount? 

4. What is to be done with Carter's account when this is posted? 

5. Why not debit some of the parties named, or the Bank ? 

* Although it is not generally done, book-keepers will find the convenience of 
making the opening entries of a new Ledger always give a direct reference to the 
old one. See that every journal entry conforms to the Book-keeper's FIRST 
RULE — equal debits and credits. 



71 



■( 1, 



i* 



i 



l! 



' 



•I 

-J 



2 



NEW YORK, January 18, 1867. 



* Paid Cash for Repairing House 44 Broadway 

If — 



■ Received Cash for a Quarter's Rent of House 44 Broadway . 

If . 



Received of James Carter his note @ 20 days in full 

- 19. 



Sold James Carter on acct. Mdse. "^ Sales Book 1. . 
20. 



Bought of Captain Rivers the ship Hudson for $16000. 
Sold him in part payment Mdse. '^ Sales Book 1. . 
Paid him in Cash ........ 

Gave him my note, dated 15th inst., @ 3 months, for the 
balance ......... 



5900. 
2100. 

8000. 



280 
150 
600 
400 



16000 



If 



* James Carter has failed, and I have compounded with him at 50 cents on 
the dollar. Rec'd the same in Mdse. I. B., p. 2. . . 200. 
The Balance is lost ..... 200. 



24. 



Gave Warden & Bell my Order on James Walker for the balance I owe 
them 



Received of C. Banks in payment for his note due this day — 

Mdse. "^ Invoice Book, p. 2 500. 

Cash, 500 . 

========== 30. izz: 



* Received of William Hay payment of his account of $3000 now due — 

Cash 1500. 

His note @ 60 days for the balance . . . 1500. 

63 days' interest included . . 15.75 1515.75 3015 75 



400 



500 



1000 



Paid Cash for disbursements of Ship Hudson . 

• 31. -r 



Exchanged notes with W. Morris for our mutual accommodation, each 
note drawn at 30 days, for . 



// 



1200 



800 



• Exchanged notes with J. Warden for our mutual accommodation, each 
note drawn at 30 days, for $600, and I have discounted his note in the 
City Bank. RecM Cash net proceeds of same . . . 596.70 

'6o days' discount ..... 3.30 600 



j 1. Here House in Broadway ia Dr., because it cost us this sum. 

i 2. House in Broadway mu.st be credited for what it brings us in for sale or rent. 

i 3. Carter must be credited for wiiat he gets out of my Debt. 

} 4. We only credit Hay for what he gets out of our Debt. Profit & Loss or Interest account is credited 
for the gain on the transaction. 

[ 5, As we disposed of Warden's note immediately, it is not necessary to debit Bills Receivable for it, as 
in the preceding entry, where we retain the note. No property account can be credited until it 
has been previously debited. The Bills Receivable account must show that we received the note 
before it can show that we passed it away. Bills Payable, the first thing delivered, must be 
credited. 



72 



NEW YORK, January 18, 1867. 



4 
2 

2 
4 

3 
5 

5 
1 

6 
1 
2 
4 

5 
1 
6 

5 

7 

3 
1 
2 



* House 44 Broadway, Dr. 
To Cash . . . 



Cash, Dr. 
' To House 44 Broadway 



Bills Receivable, Dr. 
To James Carter . 



James Carter, Dr. 
To Mdse. . 



19. 



• • • • 

• • . 

• • • « 



=- ^— -^=^ 20. 

Ship Hudson, Dr. to Sundries 

To Mdse 

// Cash .... 
// Bills Payable . 

: If 



280 



150 



600 



400 



16000 



• Sundries, Dr. to James Carter, to close account . 

Mdse 

Profit & Loss . 

24. - '- 



,1 200 
if 200 



280 



150 



600 



400 



5900 
2100 
8000 

400 



Warden & Bell, Dr. 
To James Walker 



ft 



2 
3 
3 
6 

6 
2 

3 
4 

4 
2 



Sundries, Dr. to Bills Receivable . 

Mdse 

Cash . . . . ' . * . 

30. = 



* Sundries, Dr. to Sundries 

Cash 

Bills Receivable 

To William Hay, to close account . 
// Profit & Loss 



500 



83015.75. 



Ship Hudson, Dr. . . 
To Cash . 



500 
500 



1500 
1515 



500 
1000 



75 



Bills Receivable, Dr. 
To Bills Payable 



31. 



Sundries, Dr. to Bills Payable 
Cash 



1200 



800 



3000 
15j75 



1200 



6 Profit & Loss 



TEACHER'S EXAMINATION. 

2 Whv ortiJt^r'^ '? Broadway ?-Repeat Rule VI. 
i' S^ pred't House ,n Broadway ?-Repeat Rule VII. 

4.' wS no^fredit'Ct'^^fs'-V?!'" '^ '^^'^ P'^'*^ ^-'«»?-Repeat Rule IV. 
K Whi !:.4. a\^L K^"^^^'*^' *'^« amount he has paid?— Repeat Rule TV 
th'LunkT * ^'"' R^^ceivable, Warden's note beLg the tlSng deH^erl^ to 



73 



596 
3 



70 
30 



800 
600 






I Ik 



Ir t 



»t 



3 



NEW YORK, February 1, 1867. 



*Kecoivod by the Ship lloniUl, Chase, master, from Loiuloii, Mdse. p. 1. 15. 

2. shipped to me by H. Morris by my order and tor my account, auKnint- 

ini; '^ Invoice, due in Lt>ndon lOth April next, to . $S888.88 

Gave my bonds to the Custom House ibr duties @ o and 15 mos. 22l^L\22 

Paid tVeiirht in Cash ........ 85. 



'Keeeived from K, 3Iorris, by the Ship Herald, Chase, master, froni Lon- 
don, 80 pipes Port Wine, '^ Invoice Hook, £2000 sterling, for sale on 
! his account. 
Gave my bonds to the Custom House for duties @ 3 and (> mos. 82222.22 



Paid freight in Cash 



167.78 



5. 



Paid Cash for Cooperage and Cartage of Morris* Wines 



Sold for Cash to Jacob Lorillard, 

120 gallons R. Morris' Wines. C. S. B. 1. @ $3 ^ gallon 

=^ 6. 



•Discounted in tlie City Bank W. Morris' note of 8800. 
Keceived Cash net proceeds .... 

27 days' discount ...... 

=- - 9. 



8706.40 
3.60 



Sold Wm. Park on his note @ 4 mos., endorsed by Warden k Bell, 
5 pipes R. Morris' Wines, p. C. S. B. 1 . 



12. 



* James Carter, who lately failed, compounds with me for 50 cents on the 

dollar for the note which I hold against him due yesterday. 
Received a new note endorsed by W. Hay for . . . . $300. 
The balance is lost 300. 



// 



Rec'd Cash of T. Edwards on account of his note due this day 

* Shipped by the Brig Jersey, Spencer, master, and consigned to J. Taylor 
& Co., New Orleans, 10 pipes 1200 gallons R. Morris' Wines, for sale 
on account of his consignment. C. S. B. 1. 

Paid freight, &c., in cash . . . . . • . ... 

/y 



•Shipped by the same vessel, consigned to J. Taylor & Co., for sale on my 

account, 3Idse. from store, p. Sales Book . . . . 82760. 

Invoice of Table Linens, bo't of Wm. Hay on acct. @ 3 mos. . 1500. 

Freight and charges paid in cash ...... 33. 



* Shipped by the same vessel, and consigned to J. Taylor & Co., by their 
order and for their account, an Invoice of Tea from store, p. S. B. (due 
this day) .......*.. 8600. 

Paid Freight and Insurance in cash ...... 11. 

Commission on 8600 at 5 per cent, is . . . . . 830. 

Commission for effecting insurance '} per cent, is . . 3. 33. 



1. We credit Morris only for what we get into debt to him — see note 1. p. 30. 

•2. We never credit any account for the invoice of a consignment — see Questions 21 and 28, p. 41. 

3. Bills Receivable was debited (Jan. 31), therefore we must now credit that account. 

4. Bills Receivable must be creditetl for the am't of the note given up ; Profit & Loss is Dr. for the loss. 

5. The first of these shipments is a re-consignment, and cannot be debited to any account. 
The second is an adventure of our own; we debit shipment to N. Orleans — Rule XL, p. 4L 
Ihe third being shipped by Taylor & Co.'s order, and on account, they are debited. 

74 



11106 10 



2390 
5 

360 



800 



2100 



600 



2000 



28 



4293 



644 



NEW YORK, February 1, 1867. 



1 
5 
4 
2 

7 
4 
2 

7 
2 

2 

7 

3 
2 
6 

3 

7 

3 
3 
6 



2 
3 



» Merchandise, Dr. to Sundries 
To R. Morris . . 
'/ Bills Payable . 
" Cash .... 



1:11106 



10 



' R. Morris' Sales, Dr. to Sundries . 
To Bills Payable 
It Cash 



2390 



R. Morris' Sales, Dr. 
To Cash 

Cash, Dr. . 

To R. Morris' Sales 



5. = 



' Sundries, Dr. to Bills Receivable 

Cash 

Profit and Loss 



Bills Receivable, Dr. 
To Morris' Sales 



9. 



If. 



360 



* Sundries, Dr. to Bills Receivable . 
Bills Receivable 
Profit and Loss .... 



Cash, Dr. 

To Bills Receivable 



796 40 
3 ,60 

2100 



7 
2 

7 
1 
3 
2 

8 
1 
2 

8 



» Morris' Sales, Dr. 
To Cash 



* Shipment to New Orleans, Dr. to Sundries 

ToMdse 

n Wm. Hay 

'/ Cash 



"John Taylor & Co., Dr. to Sundries . 

ToMdse 

" Cash 

>f Commission .... 



300 
300 

2000 



28 



4293 



TEACHER'S EXAMINATION. 

1. Why not credit Morris for the whole $11,196.10 ? 

2. Why not credit Morris for this invoice as well as that in the last entry? 

3. ^hy not credit Bills Payable as we did with 2d entry Jan. 31st ? 

for $3W ? I^«ceivable for the whole |600 when we only got a new note 

^* ^t^o^hem ?^'' ^''^'^'''" * ^°' *^'' *" *^^* *^'"^® Bhipments-they being consigned 

After this set is posted the student must make out all the accounts, accounts of 

^JXiUZTr^T ..Al^^'.^t^o"**" the notes, orders, drafts, acceptances, ani bins 
of exchange, inserting his own name when he is the promisori acceptor, or endorser 



75 



644 



3 



8888 88 
2222 22 
85 



2222 22 

167 78 



5 



360 



800 



2100 
600 



2000 



28 



2760 

1500 

33 



600 
11 
33 



'','• 



I 

I 



i: 



11!^ 



m • • 



NEW YOBK, February 18, 1867. 



* Received from T. Edwards for the balance of his note due 12th instant, 
an invoice of Flour "^Q I. B. 2 



n 



Insured my house in Broadway, for one year, in the Sun Office, for 
810,000, @ 2 perct.; policy $1. Amt. paid in cash 



* Insured in the New York Office, $12,000 for one year on my stock of 
mdse. in my store in Front street, @ li "^ ct. ; policy $ 1. Amt. paid in 
cash , . 



•Pd. R. Morris' Bill on me at sight for $4440, in favor of R. Banks, 

In Mdse. ^ Sales Book 3 200. 



R. Morris' goods f C. S. B. 1 
Cash 



840. 
3400. 



Pd. my note due this day in favor of W. Bayard Co. for 1600, 

In R. Morris' Wines f C. S. B. 1, sold him 9th inst. $1080. 

Mdse. "^ Sales Book 3 500. 

Cash for balance . • 20. 

, 20. ^^ 



* Accepted R. Morris' Bill on me at 10 days' sight in favor of R. 
Banks, for ........... 



Refunded cash to R. Banks for 6 galls, overgauged Wine belonging to 
R. Morris, sold him 18th inst., twenty-one dollars. R. Banks.* 

== 25. =========== 



Collected for R. Morris Ryan & Dale's draft on Barclay, Fox & Co., for 

$2000. Net Proceeds Rec'd in Cash 1995. 

Also my commission on same, i "^ ct. . . . . 5. 



• Lent Cash to Capt. John Bowline on the Bottomry Bond of his Ship, the 
Hunter, payable with 20 "^ ct. prera. to my agent, R. Morris, in London, 
10 days after the arrival of his Ship in England . . . . 



• Bought for Cash of Baker & Fox their Bill at 60 ds. on R. Morris for 



£1000 Sterling 

Premium on the same, 8 ^ ct. 



4444.44 
355.56 



' Found in the Park a purse containing eighty half eagles, which I have 
advertised but no owner has claimed it ...... 



1. I have here followed the usual practice ; but I prefer the course reccommended in Note 3, page 48. 

2. I have made it a rule to debit Merchandise only for the cost and charges of bringing it into store 
and for manufacturing. The cost of keeping the store I carry to Expense or Profit and JL^ss. 

3. We here pay this amount fob Morris ; it is the same as paying it TO him ; he gets into our debt and 
is therefore Dr. 

•i. We should never debit a consignment account for any thing but the charges. All advances made 
on acct. of it should bo debited to the owner's private acct. — Rule X., Note 29, p. 41. 

5. This is a Bill Receivable, that account is therefore Dr. 

6. We can only debit Bills Receivable for the face of the bill, not fur what it costs. 

7. We debit property for its value when it becomes ours, whether it costs us any thing or not. 

• This is BanKs' signature, making a receipt of the entry. — See Note 5, p. 12. 



t 



76 



1000 



201 



181 



4440 



1600 



2500 



21 



2000 



2000 



4800 



400 



NEW YORK, February 18, 1867. 



1 Mdse., Dr. . 

3 , 1 To Bills Receivable 



4 House in Broadway, Dr. 
2 To Cash . 



6 *Profit&Loss, Dr. 
2 To Cash 



5 
1 
7 
2 

4 
7 
1 
2 

5 
4 

7 
2 

2 
5 

8 

3 
2 

2 
3 
6 

2 
6 



'R. Morris, Dr. to Sundries 
To Mdse. 
// Morris' Sales 
// Cash .... 



Bills Payable, Dr. to Sundries 
To R. Morris' Sales 

// Mdse. 

n Cash # 



* R. Slorris, Dr. . 
To Bills Payable 



20. 



R. Morris' Sales, Dr. 
To Cash 



Cash, Dr. to Sundries 
To R. Morris . 
/' Commission . 



25. 



** Bills Receivable, Dr. 
To Cash . 



Sundries, Dr. to Cash 
•Bills Receivable 
Profit & Loss 



'Cash, Dr. . 

To Profit & Loss 



1000 



201 



181 



4440 



1600 



2500 



21. 



2000 



2000 



4444 44 
355 56 

400 , 



1000 



201 



181 



200 

840 
3400 



1080 

500 

20 



2500 



21 



1995 
5 



2000 
4800 



400 



2. 
3. 

I 4 

! 
15. 

6. 

7. 



TEACHER'S EXAMINATION, 
^use^the Riif «?"' P^'? l>y i"?talments, is it not liable to complicate and coa- 
^ hy debit Morris ? 

What 18 a Bottomry Bond? Repeat Question 5, Rule IX d 40 
n ny debjt Cash for this, seeing it cost us nothing? 



77 



Ut' 



fi. 



\k 



li 



m 



I. 






NEW YOBK, February 28, 1867. 



»ISold for Cash, at 8| per cent, prem., to R. Irvin & Co., Baker & 
Fox's Bill on R. Morris for £1000 sterling, equal to . 4444.44 
Premium 8* per cent 377.7g 4822 22 



*Sold Warden & Bell, by C. Murray, Broker, my Bill of 
Exchange, @ 60 days' sight, on R. Morris, for £1000 stg. 
Prem. on the same 8^ per. ct. . 8377.78 

Murray's Brokerage i per ct. off . 12.06 gain 365.72. 

Add 33 days' Int. included in Warden & Bell's note 11^^ 

Whole gain on the transaction 

Received in payment 

Warden & Bell's note .... 

33 days' Interest included . . 

Cash for the balance ..... 



4444.44 



376.72 4821 16 



2000. 
11. 



2011. 
2810.16 



4821.16 



* At the fire which broke out in my store in Front Street yesterday, 
goods were destroyed amounting, *^ Sales Book, 3, to . 

March 1. — ■ 



1st Co. William Hay and myself have entered into an arrangement for the pur- 
pose of buying and selling Merchandise on joint account, each partner's 
interest in such speculations to be equal. He now advances me cash 



369U 



to be invested under this arrangement 



•William Hay has sent to my store for sale on joint acct. 

5 pipes, 900 gals., Madeira Wine . . . . @81. $900. 
My half, due June 1st, is . . ... 

2. ^^- - ' = 



2500 



*Bo't of James Walker on Book acct., @ 30 days, for the 
joint acct. of myself and Wm. Hay, 20 tierces, 24,000 lb.. 

Rice @ 5 c. 

W. Hay's half, due April 1st, is . . $600. 

My half, n » n n ia , . . 600. 



$1200. 



Received Cash, freight of the Ship Hudson 



450 



tt 



Being appointed Agent for the Ship Roscoe, I have purchased of Capt. 
Manly i of the vessel for $5000. Sold him, in paynient — 
5 pipes, 900 gals., 1st Co. Wine 
20 tierces, 24,000 lb., 1st Co. Rice 

Balance paid in Cash 



1200 
1850 



@ 81.i $1200. 
@ 7 cts. 1680. 



2880.' 
2120. 



4. 



* Paid Cash for Disbursements of Ship Roscoe 

Passed my note at 4 mos. for her Ins. on 20,000 @ 2 p. ct. 



850. 
400. 



5000 



1250 



1. Here we sell two bills, both drawn on Morris. Bills Receivable is credited for the first, that account 

having been debited when we received the bill and gave value for it— note 6, p. 76. We credit i ■ 
Morris for the other bill, because we have drawn it ourselves, and therefore get into his debt. 

2. See Day Book, February 18, and Sales Book, February 28. We debit the Insurance OflBce, as we 

hold it responsible for this amount. 

3. We are not responsible to Hay for any thing more than our own share — 5*50. 

4. Here we debit Hay for his half, because he becomes owner of half the purchase, and has not paid 

us for it. , . J .XL XV X /. 

6. The advances we make as Agent for the vessel, must not be mixed up with the cost of our own 
share of her: therefore we must have two separate accounts. 



'ill 



2 
3 
6 



3 
2 
5 
6 



7 
3 
9 



9 

9 



NEW YORK, February 28, 1867. 



Cash, Dr. to Sundries 
» To Bills Receivable . 
/• Profit & Loss . 



Sundries, Dr. to Sundries . 
Bills Receivable . 
Cash .... 
» To R. Morris 
// Profit & Loss 



t 

• • 

• • 

• • 


! 

4822 


22 


$4821.16 

• * 
• • 


2011 
2810 16 






4444 44 

377 78 



8 ' New York Insurance Office, Dr. 



To Mdse. 



Mar. It 



3690 



4444 44 
376 72 



3690 



Cash, Dr 2500 

3 I To Wm. Hay [j 



9 1st Co. Sales, Dr. . 
3 » To Wm. Hay . 



2500 



450 



2. 



Sundries, Dr. to James Walker 
Wm. Hay 

* 1st Co. Sales 



2 Cash, Dr. . 
, 6 , To Ship Hudson . 



600 
600 



1850 



450 



1200 



1850 



ft 



Ship Roscoe my i. Dr. to Sundries . 
To 1st Co. Sales . . . . 
// Cash 



4. 



5000 



9 * Ship Roscoe & Owners, Dr. to Sundries . 

2 To Cash 

4 n Bills Payable 



TEACHER'S EXAMINATION 

1. Why is Bills Receivable account not credited alike for both these bills ? — Repeat 

Rule IX., p. 40. 

2. Where are the particulars of this entry for holding the insurance oflBce respon- 

sible for this amount? 

3. Why should not Hay have a credit for the whole amount of goods which he put 

into my hands ?— Repeat Rule XII., and note 8, p. 43. 
4 Why not debit Sales in Co. for the whole amount? 
5. Why not debit the account of Ship Roscoe my i for the amount? 



2880 
2120 



1250 



850 
400 



79 



t 



\ 






I 






r 



6 



NEW YORK, March 4, 1867. 



Paid Cash to the City Bank for my note due to-morrow in favor 
of W. Morris 

Also paid Cash to the Merchants' Bank for my note in favor of 
J. Warden . ......... 

5. 



800. 
600. 



■ Sold E. Banks 5 hhds. Havana Sugar, viz. — 
1050, 1150, 1000, 1200, 1100 5500 lbs. 
Less Tare, 10 per cent. 550 4950 lbs., @ 10 cts. 495. 

5 chests Y. H. Tea, viz. — 

80, 85, 75, 90, 70 . . . 400 lbs. net. @ 90 cts. 360. 

6 ps., 20^ 19?, 20, 21, 19, 20, 120 yds. S. F. Cloth, @ $10. 1200. 
6 doz. pair best 1^4 Bath Blankets . . . @ $120. 720 




83. 450. 

.75 15. 

$9. 90. 

50 24. 

1. 



150 pieces 3-color Merrimac Prints 
20 yds. Super Saxon Flannel . 
10 // Finest Green Broadcloth 
16 // Fancy Fig'd Satin 

2 Packing Cases . 

Received in Payment my acceptance for R. Morris, due 

this day 2500. 

Banks' Order at sight on J. Walker, which I deposit on 

acct. with Walker . 600. 

Cash for Balance 255. $3355. 



Received Cash for Freights and Passages "^ Ship Roscoe 



•1st Co. Mdse. being all sold, I render Wm. Hay acct. and close the sales 

as follows :— Total Sales, $2880. My 2* Commission is 
Storage .......... 

W. Hay's half net proceeds due this day is . . . 
My net gain is ........ 

12. 



72. 

8. 

1400. 

350. 



Received from J. Taylor & Co., New Orleans, acct. sales of Morris' Wines. 
Net proceeds, $4500, for which I have received their bill @ 60 days 
on Barclay, Hope & Co., which is accepted ..... 



• Received from J. Taylor & Co., N. Orleans, acct. sales of my consignment 
■^ Brig Jersey. Net proceeds, $5800, for which received their Invoice 



of Sea Island Cotton, amounting to 
Paid freight and charges on the same in cash 



5800. 
180. 



Taken to my account the remaining 9 pipes, 1080 galls., Morris' Wines, 

@ ^S'^ gall.j as cash in 2 months 

— ' n ~~ 

Received from the New York Insurance Office Cash in full 



Shipment to N. Orleans closes with a gain of 



1. This entry shows how a sale must appear on the Day Book when no Sales Book is kept. 

2. 1 have to account to the Ship Roscoe and Owners for this sum, therefore I credit their account. 

3. The total sales per Ledger is ;S2880, less charges $80 = $2800, half of which is Hay's share, ;?1400. 

Our half first cost per Ledger was $1050, and our share net proceeds being $1400, leaves our gain 
$350. 

4. Taylor & Co. having remitted the proceeds of the sales, the transaction is not carried to their account. 

We have only to debit the thing received, and credit the account that brought that thing in. — Rule 
V. and TIL, p. 39. 
6. Always close property accounts when all is sold, as we do with personal accts. when we settle with the 
parties. — Note 4, p. 70. The gain or loss must appear iu the Profit & Loss acct., for reasons given 
Mdse. acct. — Note 4, p. 33. 



80 



1400 



3355 



1800 



1830 



4500 



5980 

3240 
3690 
1507 



NEW YORK. March 4 1867. 



4 
2 



1 
4 

7 
2 



2 
9 



9 
8 
6 
3 



3 

7 



1 
7 
2 



1 

7 



2 

8 



Bills Payable, Dr. 
To Cash . 



' Sundries, Dr. to Merchandise 
Bills Payable . 
James Walker 
Cash 



1400 



Cash, Dr. . 
' To SJjiip Koscoe & owners . 



1st Co. Sales, Dr. to Sundries, to close account 
To Commission .... 

// Profit & Loss $8 and $350 * . ' 
• '' W. Hay • • 



12. 



Bills Receivable, Dr. 
To Morris' Sales 



Merchandise, Dr. to Sundries 
* To Shipment to New Orleans 
tt Cash 



2500 
600 j 
255 I 



1800 



1400 



3365 



1830 



1800 



4500 



72 

358 

1400 



4500 



Merchandise, Dr. 
To Morris' Sales . 



6980 



7 

6 



Cash,Dr 

To New York Insurance Office, to close account * 



3240 



3690 



•Shipment to New Orleans, Dr., to close account . 
lo Profit & Loss . 



TEACHER'S EXAMINATION. 

2 Whv Si'sMn pP*'"**'"'*^' ^^^^° ''' ^^^ ^^y Bo<^k Entry? 
t „ "J 9^^^^ ,Shjp Roscoe and owners for this sum ? 

Ques«oT5,?a%%?.*'' ""'' ^'''''^' ^"^ "^ ^-^^-^ g-° found here? Repeat 

t' wSv =h?'i!,^.uP'"®°* *° N®^ ^•'^^'^"8 for this $5800? 
6. Why should this account be debited for this sum? 



6800 
180 



3240 



1507 



3690 



1607 



f 



81 



m 



■il 



w* 



I 

I; 

'■ i 

L 

r 



1 1 









I 



NEW YORK, March 12, 1867. 



1 Morris' Consignment being all sold, I render him f 5^^^°,^ ^^closm^^^ 
sales as follows :-Total sales $12,120, charges posted to date, ^2444^ 
My commission on the sales @ 5 f cent., is . . • • ''O^^- 

Storage and advertising . • ', ^^ Qft^2 

Net proceeds at Morris' credit, due 2d May . . • • ^^± 



967«i 



«A8 Executor of the estate of the late A. Lenox I have received possession 

of the following property for the use of his heirs, viz. 
, Cash in deposit in the Manhattan Bank .... ^-^J^ • 

! Notes in hand, No. 15 and 16, ^ Bill Book .... 170U. 
House and lot 49 Cedar Street, valued at .... ;J^"^^- 
100 Shares City Bank Stock .... 10000. dlZUU 



1%. 



•James Carter's Note for S300 endorsed by W. Hay, fell due in my hands 
yesterday and remaining unpaid, I value the same in account with Hay 



as cash due this day 



Pd. Cash for A. Lenox's Note in the Manhattan Bank 

- 17. — 

* James Day's Note for 6500 falls due in my hands to-day. 
Rec'd in payment his new Note @ 60 days for . . • 

1 9 Cash for the balance ^^^- 

63 days' interest on new Note . • '^-^^ 



300 
2500 



400. 
104.20 



Paid Cash Attorney's fees for Estate of A. Lenox 
» n It Insurance of house 49 Cedar Street 

20. 



10. 
160. 



504 20 



170 



'Received H. Pamelas Note @ 60 days for balance due the Estate of 
A. Lenox 



// 



II 



1340 



•W. Hay has put into my store for sale on joint acct. 9 pipes Wine 1080 

gallons _• vv '^ ' 

I have added the same quantity at same price from store . ^5-^"- 

S6480. 
My half is 

^=^=:==^ 25. 

•Wm. Hay and myself have bought for cash on joint acct. 200 ^^^^^ Cot- 
ton, amounting '^^ invoice to . ??» • 

Each partner has paid his own share in cash .... 



3240 



4500 



1 The total sales were $12,120, less the whole charges $3068, leaves net proceeds $9052.-Form IV. 

-f r^:^^l^^^^^^l^^^^f^r^ ^L^r'CfiVrLoSis^r-edited for the 
t. The things received are Dr. to the things delivered, and Interest or Profit & Loss is credited lor tne 

:^° This building belongs to the Lenox Estate, and we debit it for what we expend upon it, and credit 

'" rroMhe re^'ons given in Rule XIL neither of these entries affects Hay's acct. in our Books. 



82 



NEW YORK, March 12, 1867. 



7 
8 
6 
5 

10 

2 

3 

10 

10 

3 
3 

10 
2 



3 
2 
3 
6 

2 

10 
10 

3 
10 

9 
1 

9 
2 



Morris' Sales, Dr. to Sundries, to close acct. 

To Commission 

'/ Profit & Loss 

^ // R. Moriis 



9676 



// 



* Sundries, Dr. to Estate of A. Lenox 

Cash 

Bills Receivable .... 

House 49 Cedar Street 

City Bank Stock .... 



' Wm. Hay, Dr. 
To Bills Receivable 



16. 



A. Lenox Estate, Dr, 
To Cash. . 



1 
1 ■ i 
: ' i 


606 

18 

9052 

1 


7500 

1700 

12000 

10000 


1 

31200 

it 


300 

1 


It 

300 


2500 





* Sundries, Dr. to Sundries 
Bills Receivable. . 
Cash 

To Bills Receivable 
// Profit & Loss 



17. 



2500 



^504.20 



400 
I 104 20 



4J 



// 



Sundries, Dr. to Cash 
^Estate of A. Lenox . 
House 49 Cedar Street 



Bills Receivable, Dr. 
To Estate of A. Lenox 



— 20. 



tt 



» 1st Co. Sales Dr. 
To Mdse. . 



25. 



« 1st Co Sales Dr. 
To Cash 



10 
160 

1340 



3240 



4500 



500 
4 20 

170 



1340 



3240 



4500 



TEACHER'S EXAMINATION. 

o S?7 ^° ^-t ^^^^^ net proceeds due Morris hero?— Repeat Quest. 26. p. 41. 

2. Why credit the Estate for all this property ? *» vt ou «, p. tx. 

3. Why debit Hay for this note ? 

4. Why debit Bills Receivable and Cash, and credit Bills Receivable, and Profit 

&Loss, all m the same entry?— Repeat Rules V. and VIH 
6. J^hy not debit Estate of Lenox for this $160, as this house belongs to it? 

Xeal Ru?o XII?;'S: ""'"' '" '^^'"' '''^'^"°* '° ''''''' «^ '''''' ^^««'- 



8S 



8 



h 



•! , 



f-^ 



! I 



b> 



NEW YOBK, March 28, 1867. 



> Placed to 1st Co. Account 500 bbls. Flour from store 
William Hay has sent in 300 bbls. 

My half is 32000. 

Rec'd Bal. of Wm. Hay's share in cash 500. 




$2500. 
1500. 



= 31. 



' Paid Cash to Charlotte Lenox on acct. of her legacy 



* Paid Cash to Robert Lenox on acct. of his legacy 
== April 1. == 



Lent Cash to James Walker on his note @ 6 months, endorsed by War- 
den & Bell, and dated the 6th instant, for . . . 2000. 
6j% months' Interest included in the note .... ^^« 



2500 



500 



800 



5. 



Shipped by the Columbia, Gray, Master, consigned to Baring & Co., 
Liverpool, for sale on my account — 

40 bales Cotton from store 2500. 

100 bbls. Flour from do @ 85 500^ 3000. 

4500 bush. Wheat @ $1, Bought of P. Nevius on 

Barclay, Hope & Co.'s acceptances . . . 4500. 

Shipping Expenses paid in Cash 348.55 

Passed my note to the Marine Insurance Co. for pre- 



2063 



mium ' on $8010 @ 2 per ct. (covering the pre- 
mium and policy), Policy $1.25 



161.45 8010 



* Shipped by the Brig Cherub, consigned to Hartwell & Thorndike, Bos- 
ton, by order and for account of R. Morris, London — 
240 bbls. Mess Pork, Bought of Wm. Hay @ 30 days, due 

May 5th . $2000. 

Paid Shipping Expenses in Cash 
Passed my note @ 30 days for Insurance 
Commission on purchase of $2000 @ 5 per cent 
i per ct. for effecting Insurance . 

- ^^^^ 10. -= 



100 
5 



20. 
41.25 

105. 



* Paid Cash for honor of John Taylor & Co., their draft on Sidney Wood 
& Co. being Protested for non-payment. 

Bill $1200, Protest, &c., $4 1204. 

My J per ct. Brokerage ....... 6. 



Received from the Executors of my father's Estate 50 shares Merchants* 
Bank • Stock, valued at 



1. Hay does not here get in debt to us, nor we to him. Therefore we have no entry for his acct. 

2. These persons being Legatees, we must debit their private accounts for all payments we make them, 

until the final settlement.— Note 3, Lenox Kstate, p. 110. 

3. The invoices, shipping expenses, and policy, amount to $7849.80. Then 98 : 100 : : 7849.80 : $8010, 

the sum upon which to cast the 2 per ct. premium, which amounts to $1G0.20 + 7849.80 = 8010, 
thus insuring both premium and policy with the shipment. 

4. Morris gets in debt to us for this amount, therefore he is Dr. — not Hartwell & Thorndike. 

5. We were not obliged to pay this draft. We have done it to save the credit of our N. Orleans 

correspondents, Taylor & Co. 

6. We might credit Profit and Loss, but such additions to our capital belong more properly to Stock, 

for reasons given in note 3, page 30. 



84 



2166 



1210 



5000 



25 



NEW YORK, March 28, 1867. 



8 



1 

9 
2 



2 
10 



* Sundries, Dr. to Mdse. . 
1st Co. Sales . 
Cash .... 



31. 



Sundries, Dr. to Cash 
' Charlotte Lenox . 



2000 
500 



10 * Robert Lenox . 



3 
2 
6 



7 
1 
3 
2 
4 



=-^ AprU 1. 

Bills Receivable, Dr. to Sundries 

To Cash 

'/ Profit & Loss . 



6. = 



' Shipment to Liverpool, Dr. to Sundries 

To Mdse 

V Bills Receivable .... 

" Cash 

// Bills Payable .... 



500 

800 



2063 



2500 



1300 



8010 



2000 
63 



* R. Morris, Dr. to Sundries 

3 I To Wm. Hay . 
2 // Cash 

4 tf Bills Payable 
8 'f Commission 



8 
2 

8 



4 
1 



2166 25 



3000 

4500 

348 

161 



I 



10. 



* John Taylor & Co., Dr. to Sundries 

To Cash 

'/ Commission .... 



Merchants' Bank Stock, Dr. 
• To Stock .... 



1210 



TEACHER'S EXAMINATION. 

o ^^ ^^ t^^???u^°t"'^ ^^^^ ^°^ ^*y'« account? Repeat Rule XII., p. 43. 
2. Why not debit the Estate of Lenox, these being payments to the Legatees? 
A S?. ^^ "°" **^® amount upon which to cast the premium ? 

to t^eJ^r*"^^" * Thorndike not debited for these goods, they being shipped 

5. Why should we pay this draft, it being drawn on Sidney Wood & Co.' 
t. Why not credit Profit & Loss for this $5000 ? 



5000 



2000 
20 

41 \2'i 
105 



55 
45 



1204 
6 



5000 



85 



9 



f. 

f 



NEW YORK, April 10, 1867. 



Accepted supra protest for the honor of J. Taylor & Co., their bill at 

10 days, on Sidney Wood & Co., for $600; protest $1 . $601. 
My i ^ cent. Brokerage — due 23d inst ^- 



' Shipped by the Cambria, Adams, master, and consigned to R. Morris, 
London, for sale on his acct., J. Taylor & Co., and myself, each h 
60 Bales Sea Island Cotton from store 
100 Barrels Flour from do. @ $6 
200 Bales 1st Co. Cotton .... 
Shipping Expenses paid in Cash 
Passed my Note @ 3 mos. for insurance . 
My commission on $14400 @ 2* ^ ct. is 
„ II Effecting Insurance \ "^ ct. 

J. Taylor & Co.'s J is ^ 4980.33 
R. Morris' '/ 4980.33 

My (2d Co.) // 4980.34 $14941. Due this day. 



$4000. 
^00. 4600. 

"T 9500. 

300. 

145. 
$360. 
36. 396. 



604 



• Shipped by the Briir Tribune, Speer, master, and consigned to C. 
Hartwell, Boston, 18 Pipes Wine belonging to 1st Co., amounting 
^ Invoice to $6480. My half is .... $3240. 
Paid shipping expenses in cash ^^- 

=:====== 15. 



14941 



3300 



* Shipped by the Erie, Truck, master, and consigned to Baring & Co., 
Liverpool, for sale on 1st Co. account, 

400 Barrels Flour from store, @ $6, $2400. 

150 // // put on board by Wm. Hay, @ $6, $900. 

Wm. Hay passes his Note for insurance . . • 165. 1065. 

I have paid the other expenses in Cash .... 1^3. 

My half is . . 1799. 

Wm. Hay's do. is . 1799. $3598, as cash this date. 



3598 



^ Received from J. Taylor & Co., of New Orleans, invoice of 100 Bales 
Cotton shipped to London on the 2d inst., consigned to R. Morris 
for sale on their acct., Morris' acct., and on my acct., each ^. || 

My (2d Co.) i due in cash 2d inst., is 



20. 



Received Cash amt. of Warden & Bell's note due 31st ultc, 
20 days' interest on the same .... 



u 



2011. 
6.70 



In 



.^ , p « Received from J. Walker invoice of sugars amounting to 
.Mi KjO. ^^ j^^g purchased to sell on our joint acct. My half is 



84000 which 



1600 



2017 70 



2000 



1. This means accepting after protest— after Sidney Wood & Co. refused to accept. The bill is then 

in the same situation as that in Note 5, last page, and if not protected here mil return under 
damages against our New Orleans correspondents, Taylor & Co. We of course debit them for 
the amount. — Form XXI., p. 120. , ., , * 

2. We have paid for the whole shipment, and Taylor k Co. and Morns are each responsible to us 

for their respective shares from this date. . 

3. This is part of the ist Co. property shipped to another market, and our share is charged to a new 

acct. : therefore Ist Co. Sales must be credited for our share. ,. t* 

4. We debit Ilay for his share of the adventure, and credit him for what he has paid upon it. It 

would havo been equally correct to have debited him for the balance only.— Note 4, p. l8. 
6. We credit Taylor & Co. for our share of this adventure because they have paid the amount for 

us, and w»' still owe them for it. 
(J. We call this an adventure because we do not manage the sales. 



8 
4 
S 



8 

5 

11 

1 

9 

2 

4 
8 

11 

9 
2 



11 
3 
1 
3 

2 

11 

8 

2 
3 
6 

11 
7 



NEW YORK, April 10, 1867 



* John Taylor k Co., Dr. to Sundries 
To Bills Payable 
// Commission .... 



' Sundries, Dr. to Sundries . 
J. Taylor k Co. . 
R. 3Iorris 

2d Co. Shipment to London . 
To Mdse. .... 
// 1st Co. Sales . 
'/ Cash .... 
'/ Bills Payable . 
I' Commission . 



// 



' 1st Co. Shipment to Boston, Dr. to Sundries 

To 1st Co. Sales 

'/ Cash 

= 15. 

Sundries, Dr. to Sundries 
* 1st Co. Shipment to Liverpool 

Wm. Hay 

To Mdse 

'/ Wm. Hay . . . . 
» Cash 



2d Co. Shipment from ^N^. Orleans to London, 
'' To J. Taylor & Co 

20. 



Dr. 



Cash, Dr. to Sundries . 
To Bills Receivable . 
// Profit and Loss 



*3d Co. Adventure, Dr. 
To J. Walker 



4941 



$3598 



604 







601 






3 


4980 


33 




4980 


33 




4980 


34 


■ 

4600 

9500 

300 

145 

396 


3300 




1 

3240 
60 


1799 






1799 




2400 

1065 

133 



1600 



2017 70 



2000 



1600 



2011 
6 70 



2000 



TEACHERS EXAMINATION. 

1. What does accepting supra protest mean? 

2. Why debit Taylor & Co., and Morris, for their shares at this time?— Repeat note 

O, p. -io. '^ 

?* Sl*^' ^•'' TT^ ^?- ^i^'l^ credited for this amount, seeing the goods are not yet sold? 
4. Why IS Hay both debited and credited in the sjime entry ? 
« T^^^ ^^^'^^'* Taylor & Co., seeing we have not received any thing from them? 
6. Why do \vc call this an adventure ?— See note 9, p. 42. 



86 



87 



{■ 



Ji 



» 



10 



NEW YOBK, April 20, 1867. 



' Received by the Vixen, Chase, Master, from R. Morris, London, 40 bales 
Brussels Carpeting, amounting "^ Invoice to £2700 sterling, consigned 
to me for sale on 2d Co. account. My i is £900, due 10th instant, 
equal to ........ • S4000. 

Gave my bonds @ 6 mos. to the Custom-House for duties . 3000. 
Paid Freight and other charges in Cash .... 185. 

22. ^===.== 



' Paid my note in favor of Capt. Rivers, which has lain over under protest 
since the 18th instant, for ..... . S8000. 

4 days' Interest, $5.33, protest, &c., $1.72 .... 7.05 

Sold him on account 800 bbls. 1st Co. Flour @ $6 . . . 4800. 
Paid the balance in Cash ....... 3207.05 



8007.05 



•Received Cash from W. Hay for his note due 3d inst. 
19 days' Interest on same $4.80, postages 25 

^= 23. 



1515.75 
5.05 



Paid Cash for J. Taylor & Co.'s draft on Sidney Wood & Co. Accepted 
by me on the 10th instant, for ........ 

==^ 25. = 



•Received advice from R. Morris that on the 20th ultimo Capt. Bowline 
cancelled his Bottomry Bond on the Ship Hunter, by paying Morris the 
amount on my account ...... $2000. 

Also the premium upon the same ..... 400. 

— - -----^ 30. -='-=~^ ■ 

• Received from J. Walker account sales of the Invoice of Sugars bought by 
him on the 20th instant; net proceeds $5000. 

Myhalfis 



3d Co. Adventure now closes with a gain of 

May.l< 



•Rec'd Cash for a Quarter's Rent of House 49 Cedar St. 
« 5 per ct. dividend on City Bank Stock . 
» 5 per ct. // on Merchants' w . 
K Quarter's Rent of House 44 Broadway . 

=^ .-.^- 4, - 



300. 
500. 
250. 
150. 



* Received Cash Freight of Ship Hudson 
Freight and Passage money of Ship Roscoe 



3500. 
4200. 



// 



•Paid Cash for two Bonds to the Custom-House for $1111.11 each 



' 1. We are only accoantable to Morris for our own share of this shipment. 

! 2, We can never debit the Bill account for more than the face of the note — the same as it was credited. 

3. If we credit the Bill account for any more than it was debited when the note was received, it will 

throw the acconnt that much out of balance. 

4. R. Morris gets in debt to us for the amount he acknowledges to have received for us. 

f. We credited him for our share of the purchase money when he bought the goods ; now, as he has sold 
the property, and got our share of the net proceeds in his hands, we debit him. 

6k These different accounts must have credit for these sums, because they have brought us in these 
amounts. 

7. 1 am sole owner of the Hudson, but only part owner and agent of the Roscoe. 

ft These are Bills Payable : we have opened no Custom-House bonds account. 



8i 



7185 



8007 , 05 



1520 80 



601 



2400 



2500 
500 



1200 

7700 
2222 22 



NEW YORK, AprU 20, 1867. 



10 



12 2d Co. Sales, Dr. to Sundries 
5 1 To R.Morris . 



4 
2 



9 
2 



4 
12 



5 
3 

6 



7 
11 

11 
6 



12 

10 

10 

4 

4 

12 
6 

9 

4 
12 



7185 



If Bills Payable . 
w Cash . 



22. 



Sundries, Dr. to Sundries, $8007.05. 
4; » Bills Payable .... 

6 Profit & Loss .... 

To 1st Co. Sales .... 

» Cash ..... 



8000 
7 05 



2 I Cash, Dr. to Sundries 
3, « To Bills Receivable . 
6 // Profit & Loss . 



23. 



Bills Payable, Dr. 
To Cash 



25. 



1520 



4000 

3000 

185 



I 

I 



80 



* R. Morris, Dr. to Sundries 
To Bills Receivable 
» Profit & Loss 



30. 



» J. Walker, Dr. . 
To 3d Co. Adventure 



If 



3d Co. Adventure, Dr. (to close acct.) . 
To Profit & Loss .... 

-^ May 1. 



601 



2400 



Cash, Dr. to Sundries 

• To House 49 Cedar Street, Received Rent 
fi City Bank Stock // Dividend 

n Merchants' do. n do. 

" House 44 Broadway // Rent 



2500 



500 



1200 



4800 
3207 05 



1515 75 
5 05 



601 



11 



' Cash, Dr. to Sundries .... 
To Ship Hudson . . . Rec'd Freight 
H Ship Roscoe and owners // 



N 



7700 



8 Bills Payable, Dr. 
To Cash . 



Paid my two Custom-house bonds J 



2222 22 



1. Why not credit Morris for the whole shipment?— Repeat note 8, page 43. 

2. As It cost us $8007.05 to take up this note, why not debit the Bill account for 

that amount? 

3. Why not credit Bills Receivable for the $1520.80, having received that amount 

for the note ? 

4. Why is Morris Dr. ? 

6. Why debit Walker in this case? 

6. Why is this sum credited to so many diflFerent accounts? 

7. Why not credit the Ship Roscoe and the Ship Hudson alike here? 

8. Why not debit Custom-house Bonds account ? 



89 



2000 
400 



2500 



500 



300 
500 
250 
1.50 



3500 
4200 



2222 22 



I 



I 



f^ 



11 NEW YORK, May 4, 1867. 



'Sold Finlay & Co. my 50 shares Merchants' Bank Stock @ 110, 85500. 
Bought of them in part payment 500 bbls. Mess Pork for the joint ac- 
^ count of myself and "VVm. Hay . @ 810 .... 5000. 
Received the balance in Cash 500. 

Wm. Hay's half is . . . . 2500 

My half is 2500 $5000 as cash this day. 



Merchants' Bank Stock now closes with a gain of 

= . , - 8. = 



Paid Cash for my notes in the Insurance Office 

and . 



8161.45 
41.25 



Sold James Walker my Bill at 60 days' sight on R. Morris for £1000 

sterling 4444.44 

8 per ct. Premium 855.56 

"Received in payment Walker's Receipt for the balance I owe 



him 
Cash for the balance 



13. 



.4200. 
4800. 



Delivered to James Walker, for sale on our joint account, an Invoice of 

Sugars, amounting to 83000. My half is .... 1500. 
Received Walker's Check on the Bank for his half . . . 1500. 



Sold Warden & Bell 120 pieces. 4250 yds., 2d Co. Carpeting, @ 82, 88500. 
Received in payment their draft at 30 days' sight on J. Landis & Co., 'of 
New Orleans, for 87000, at 2 per ct. disct. . . 6860. 

Cash for the Balance 1640. 88500. 

2 per ct. Discount on the Bill is .... 140. 

18. 



Sold in Austin & Co.'s Auction Room, 55 pieces 2d Co. Carpeting. 

Net proceeds "^ their acct. sales 83560. 

Received in payment their note at 60 days, for . . . S3000. 

Cash for Balance 560. 

I take the remaining 55 pieces to my account at market prices 3814. 



// 



I close 2d Co. Sales, rendering each partner a copy of the account. 
Total Sales 815,874, Charges posted 83185. 

*My Storage is 83, Advertising 810 .... 813. 

// Commission 2h per ct. on 815,874 .... 396.85 
R. Morris's i net proceeds due this day is ... 4093.05 

J. Taylor & Co. i do. do 4093.05 

My i do. 4093 05 

My i first cost was 4000. gain . . 93.05 



1. Merchants' Bank Stock is the thing delivered, and is therefore credited. 

2. We debit Walker, becanse we get out of his debt for this amount.— See Led., p. 107. 

3. The rule is always to debit or credit a bill for its face — not for what it passes in payment. 

4. We dfdact the whole charges, §3594.85, from the total sales, $15,874, which leaves $12,279.15 

ceeda, divided by 3 gives each partner's share $4093.05.— See Form V., p. 118. 



90 



net pro- 



5500 



750 



202 70 



4800 



8000 



8640 



7374 



8689 



NEW YORK, May 4, 1867. 



11 



4 

12 

3 

9 

4 
6 

4 
12 



7 

12 
5 

6 

1 
11 
12 



3 
12 
12 

6 

12 

3 

12 

1 

12 
6 

8 
5 
8 



^ Sundries, Dr. to Merchants' Bank Stock 
Cash Received of Finlay & Co. . 
Wm. Hay, for his half invoice 
1st Co. Sales for my half do. . 

Merchants' Bank Stock, Dr. (to close) , 
To Profit and Loss, for net gain . 

-' ' 8, 

Bills Payable, Dr. 

To Cash Paid my two notes in the Marine Office 



5500 



500 
2500 
2500 

750 



202 70 



750 



202 70 



Sundries, Dr. to Sundries, .... 
'James Walker, for his Receipt in full 

Cash Received of Walker 

To R. Morris, for my bill on him 
tf Profit and Loss for 8 "^ ct. Premium on the same . 



$4800. 



13. 



Sundries, Dr. to Mdse. delivered J. Walker on joint acct. 
3d Co. Adventure for my half .... 
Cash Rec'd for Walker's half .... 



// 



Sundries, Dr. to Sundries, 
' Bills Receivable for draft on Landis & Co. 

Cash for balance ..... 
. To 2d Co. Sales for sale of carpeting 

// Profit and Loss for 2 \^ ct. discount on draft 

Sundries, Dr. to 2d Co. Sales 
Bills Receivable, for Austin & Co.'s Note . 
Cash Received of Austin & Co. . 
Mdse. for carpets taken to my acct. 

"" ' n 

*2d Co. Sales, Dr. to Sundries, to close acct. 
To Profit and Loss, for storage and net gain 
// Commission 2| ^ ct. on $15874 . 
// R. Morris, for his J net proceeds 
// J. Taylor & Co. for 



88640. 



600 
4200 








4444 
355 


44 
56 


1500 
1500 


3000 




7000 ' ' 
1640 

1 
1 


1 

8500 
140 




3000 

560 

3814 


7374 





i 



8689 



// 



// 



106 05 

396 85 

4093 05 

4093 05 



1. Why credit Merchants' Rank Stock? 
I 2. Why debit Walker ? 

3. Why should not Bills Receivable be debited for §6860 only, what it was received 

in payment for?— Note 2, B. Receivable acct., p. 103. 

4. How do we settle this transaction and find each partner's share ? 

I Note.— As some merchants desire their Journals to exhibit a brief recapitula- 
tion of the Lay Book entries, we are journalizing the month of May in this manner 
as an illustration. The learner will perceive from this, that by particularizim; the 
transactions more minutely, he can construct his Day Book on the Journal inrin, 
and post direct from it to the Ledger, without the use of a Journal : which in any 
ordinary business is, therefore, not. required. 



91 



NEW YOKK, May 18, 1867. 



* Renewed W. Wallace's Note of 81200 due 15th inst., for the same amonnt 
for 3 months. Received Interest, &c., in cash 

25. 



Sold for cash at 1 "^ ct. premium to C. Hartwell, Warden & Bell's draft 

on Landis & Co. of New Orleans 7000. 

1 "^ ct. premium is 7Q. 

31. 



•H.Pamell has failed, and the note which I hold against him for Lenox's 
Estate, due 22d instant, is lost 1340. 

J. Day has also failed, and the note which I hold against him 
due 19th, is lost 400. 



// 



Shipped by the Columbia, Gray, Master, by order and for account of R. 

Morris, London, due in cash this day. 
1000 Barrels Flour from store, @ $5 . . . . 85000. 

Shipping charges paid in cash 300. 

Passed my note to the National Insurance Co. for premium 112.30 

Commission for shipping 5 "^ ct. on 85300 . . 265. 

» for effecting insurance i "^ ct. on 85565 13.92 278. 92 



18 90 



7070 



1740 



5691 



t/ 



Shipped by the same vessel and consigned to R. Morris 80 packages Mdse. 

received from Hartwell & Thorndike, Boston 
My comm. receiving and forwarding 50 cts. "^ package, due June 30 
Forwarded Hartwell & Thorndike particulars for Insurance 

^""^^ - ' ==^- June It .^^ 



Bot. of Warden & Bell 2400 Barrels Genesee Flour @ 85. Amt. 
Invoice 812000. Sold them in part payment 

50 pieces English Prints @ 84 8200. 

8 pieces 320 yards Brussels Carpet @ 82 . . 640^ 840. 

I am to pay them cash on the 18th instant . 10000. 
* And to give my note at 60 days for the balance 1160^ 11160. 



Received from R. Morris his Account Sales of 2d Co. Shipment from 
*New Orleans to London. Net proceeds £1435 10s. sterling. 

My i is £478 10s. due April 15, equal to . . 2126.66 

Also sales of 2d Co. Ship't. to London,^ "Cambria." N.P. 

£3800 5s. stg. My i £1266 15s. due Apr. 30, equal to 5 630. 



I now close the following accounts, viz. : 

2d Co. Shipment, New Orleans to London, with a gain of 
2d Co. Shipment to London, with a gain of 



526.66 
649.66 



Received from C. Hartwell Account Sales of 18 Pipes Wine shipped to 
him for sale on Ist Co. acct. 10th Apr. last. N. P. due June 10 



1. The note being renewed at the face, there ia no occasion for passing it through the books thouehit 

must appear on the Bill Book.— See Bill Book May 18, p. 48. 

2. Pamell's note was credited to Lenox's Estate, and is,' therefore, not our loss. 

3. We must for the present credit Warden & Bell for this $11160, and they will be debited for the cash 

and note when delivered them.— See .June 18, p. 94. 

4. He has sold the goods and got our money in his hands. 



92 



40 



12000 



22 



7756 66 



1176 32 



6480 



NEW YOBK, May 18, 1867. 



18 



12 
6 



12 

3 

6 

3 

10 

6 

5 

1 

12 

4 

8 



5 

8 



1 
1 
5 





11 
11 

6 
11 
11 

12 
11 



^Cash, Dr 

To Profit & Loss, for Interest, &c., received for renewing 
Wallace's note for $1200 ... . 

========= 25. =L=~-^ 



18 90 



Cash, Dr. to Sundries 

To Bills Receivable for Warden & BelFs bill sold to G. 
Hartwell 

" Profit & Loss for 1 per ct. Premium received on the same 



7070 



18 90 



il. 



Sundries, Dr. to Bills Receivable .... 
'Lenox's Estate for H. Parnell's note lost by his failure 
Profit & Loss for J. Day's note lost by his failure . 



^>f 



R. Morris, Dr. to Sundries for Shipment per " Columbia^ 
To Mdse. for 1000 bbls. Flour from store @ $5 . 
tf Cash paid Shipping Charges on the same . 
// Bills Payable for my note passed for Insurance 
ff Commission for Shipping 5 per ct. on $5300 $265. 

" " for effecting Ins. on 5565 i per ct. 13.92 

^ 



Robt. Morris, Dr 

To Commission for Receiving and Forwarding 80 packao-es 
of goods from Hartwell & Thorndike . . 7 

June 1. ==:-• --r 



Mdse., Dr. to Sundries 
To Mdse. . 
' // Warden & Bell 



a 



*R. Morris, Dr. to Sundries .... 

To 2d Co. Shipment from New Orleans to London . 
// 2d Co. Shipment to London .... 



// 



Sundries, Dr. to Profit & Loss .... 

!j ^^' f ^^P^®°* fr«i» New Orleans to London, to close 
M Co. Shipment to London, to close 



C. Hartwell, Dr. 

To 1st Co. Shipment to Boston 



J" WK^ ^^ ?°,* Bills Receivable debited for this renewal, like that on March 17 » 
2. J hy not debit Profit & Loss for both of these losses ? ^ ' 

way? ''"■*^''' * ^'" ^""^ '^'' '^'"•^""*' ^*»«° " i« t° be paid in a particular 

4. Why is Morris debited for these sums? 



1340 
400 

5691 22 



7000 
70 



1740 



5000 
300 

112 30 

I 

278 92 



40 



12000 



40 



840 
111160 



7756 ; 66 



526 66 
649 66 

i 

6480 



2126 66 
5630 

1176 32 



6480 



93 



I I 



H 



i 



13 



NEW YORK, June 1, 1867. 



* 1st Co. Shipment to Boston now closes as follows — 

Total Sales 86480 ; Charges Posted 860. 
My Commission on S6480 @ 2h per ct. is . . 
Wm. Hay's half net proceeds due this day is 
The balance of the acct. on the Ledger is 83180. 

My half first cost is . . . 83240. 
My half net proceeds is . . 3129. LossUL 83291. 



162. 
3129. 



Eeceived Cash from Warden & Bell for their note due this day 

n — 



' Bought for Cash at 8 per ct. premium, of R. Banks & Co., for the accouct 
of R. Morris, their Bill @ 60 days' sight on Gibbs, Son & Bright, Lon- 
don, for £1500 sterling, which I remit to Morris . . 87200. 

My i per ct. for Investing, due this day ..... 18. 

^ --= ^- 18. - 



( J 



Paid "Warden & Bell balance due them on purchase of Flour 1st instant 

Check on the City Bank for 10000. 

My note @ 60 days for the balance ..... 1160 . 
_ „ 1 



James Walker has returned the whole invoice of goods which I placed in 

his hands for sale on joint account 13th May last . . 3000. 
My half is ... . 81500. 
» Walker's half is . . . . 81500. 83000. 

Walker takes up his note of 82063, due 9th October next, 

and pays me the balance in Cash ..... 563. 



// 



*The Ship Columbia in which I shipped and insured on May 31, for R. 

Morris, goods amounting to 85565, is lost. Received payment for the 

loss from the National Insurance Office as follows — 

My Premium note held by the office for $112.30 

Cash for the balance — due Morris this day .... 5452.70 

" Bought of Joel Post, his Bill on Baring & Co. @ 60 days' sight for £450 



500. 
1660. 82160. 



sterling 
Premium 8 per ct. . . . 
Paid him in his note due 15th instant 
Cash for the balance 

-= - 25. ~ 

• Bought 10 tierces Refined Sugars at Austin's auction room 
for Cash ........ 

Sold them at the same place to G. Barron on his note at 30 
days for 8980. Gain on the transaction 



82000. 
160. 



8800. 
180. 



1. The Rule is. always to deduct all charges, iucluding commission, from total sales. — See note 4, p. 90. 

2. Our Profit & Loss account is not to be debited for this premium — we paid it for Slorris. 

3. We have taken back Walkers share of these goods in part payment of Jiis note. 

4. We get iu debt to Morris, having collected this money for him of the Insurance OflBce. 

5. We have here received one Bill Receivable, and given up another. 

6. Property can never be delivered or credited, until it is received anddeinted: this merchandise having 

been sold before it was brofight home or entered, the transaction cannot affect that account. Bills 
Receivable — the thing rece;ived — is Dr. ; Cash and Profit & Loss, Cr. 



3291 



2100 



7218 



11160 



3563 



5565 



216a 



980 



NEW YORK, June 1, 1867. 



18 



11 

6 
3 
8 

12 
3 

5 

12 

8 

5 

12 

4 



1 
12 

3 
11 

5 

4 

12 



Sundries, Dr. to Sundries 
* 1st Co. Shipment to Boston, to close acct. 

Profit & Loss 

To Wm. Hay . ... 
// Commission 

12. 



83291. 



3 

6 

3 

12 

3 

12 

6 



Cash, Dr. . 

To Bills Receivable .... 

// — — • 

' R. Morris, Dr. to Sundries 
To Cash . . . . 
If Commission 

18. 

Warden & Bell, Dr. to Sundries, to close acct. 

To Cash 

'/ Bills Payable . 



Sundries, Dr. to Sundries . 

»Mdse 

Cash 

To Bills Receivable 
ff 3d Co. Adventure, to close acct. 

// 
* Sundries, Dr. to R. Morris . 
Bills Payable .... 
Cash 



Sundries, Dr. to Sundries . 
^ Bills Receivable . 
Profit & Loss . 
To Bills Receivable 
// Cash . . 

25. 



Bills Receivable, Dr. to Sundries 

« To Cash 

'/ Profit & Loss . 



3180 
111 



• • 



2100 



7218 



11160 



83563. 



3129 
162 



2100 



7200 
18 



10000 
1160 



3000 
563 



82160. 



The student will not understand 



1. Explain how the.net proceeds is found here. 

this entry without repeated study. 

Why is Profit & Loss not debited for the premium we paid on this Bill? 

Walker paid us for this $1500 worth of goods on the 13th May, why is he not 

now credited for the amount, having returned the goods ? 

Why credit Morris for this money ? 

Why is the Bills Receivable account both debited and credited in the same 
entry? «»^w 

Why is the Merchandise account not to be credited for this $980, seeine mer- 
chandise is the thing delivered? « 8 "*" 



112 30 
5452 70 



2000 
160 



' 2063 
1500 

5565 



980 



500 
1660 



800 
180 



; 



94 



95 



u 






J 






NEW YOBK, June 25, 1867. 



William Hay and mysolf having agreed to close our speculations on joint 
account, he has taken delivery of his half Invoice of Pork, bought 
4th May last, and which remained unsold, and I carry my half to my 
own Merchandise account 2500 



« Close 1st Co. Sales. Total sales effected for 200 bales Cotton and 800 

bbls. Flour, 814300. 
My Commission, 2i per cent., on the same is . . . . 357.50 
Wm. Hay's half net proceeds paid him in cash is . . . 6971.25 
My net gain is 471.25 

28. =====^^^ 



Paid Cash J. Carpenter & Co.'s Bill for Repairs of House 49 Cedar Street 



My Commission for collecting $800 for Estate A. Lenox, @ 5 per cent., is 



// 



•Received advice from Baring & Co., of Liverpool, of the Sale of 1st Co. 
Shipment of Flour, shipped by the "Erie" 15th April last, net pro- 
ceeds £900 sterling 84000, which they remitted agreeably to my orders 
to R. Morris, London, on my account, 10th ultimo . . $4000. 

Premium on Exchange is 8 per ct 320. 

Wm. Hay's half is . . . 2160. " 

My half is . . . . 2160. 84320. 



7800 

280 

40 



// 



Received advice from R. Morris that he received Cash £562 10s. on the 

20th ultimo, Freight of Ship Roscoe .... 82500. 

■ The present rate of Exchange on London is 8 per ct. prem. . 200. 



// 



432U 



2700 



* I close the acct. of Ship Roscoe and owners. Total receipts of Freight 

is 88700. Disbursements to date 81250. 

My 2^ Commission on Freights and Passages collected is . . 217.50 

C. Hartwell's i net proceeds is 3616.25 

My i do. 1808.13 

Wm. Ha/s i do. 1808.12 7450 

=======.==== 30. - ""'"•--■^ 



Received advice from R. Morris that he has sold my } of Ship Roscoe. 
Net proceeds due 30th August, £1462 10s 



6500 



// 



I now close 1st Co. Shipment to Liverpool with a gain of 
Also Ship Roscoe my J with a gain of . 



361. 
3308.13 3669 13 



Paid Cash for Expenses, ^ Expense Book, from 1st January to date . 

M 



• Balance of Interest due R. Morris, "^ acct. current rendered, is 



1. 

2. 
3. 

4. 



Hay has paid for his share of these goods, therefore cannot be debited when he takes them away. 

Deduct all charges from the total sales.— See Note 3, p. 80, and Note 4, p. 90. 

Profit & Loss or Exchange miiit be debited for both these sums, because the gain on the exchange 

forms part of the profits, for which we are accountable to our associates in the transactions. 
This is a settlement of all our transactions as agent for the ship up to this date. We close her acct. 

and carry the diridends to the credit of the other owners. 
This is found by drawing out his account current.— See Form 1, p. 114. 

96 



1099 



23 



33 06 



1 




9 

8 

12 

6 



10 
12 



10 

8 



NEW YORK. June 25, 1867. 



* Mdse., Dr. . 
To 1st Co. Sales 



If 



'1st Co. Sales, Dr. to Sundries, to close acct . 
10 Commission 

// Cash ...'•*• 
f Profit & Loss 



2500 



7800 



— =::^.,=^- 28. 

House 49 Cedar Street, Dr. 
To Cash . . . ' 



Estate of A. Lenox, Dr. 
To Commission 



280 



40 



5 

6 

3 

11 



9 
5 

6 



9 
8 
12 
9 
3 



Sundries, Dr. to Sundries 
R. Morris • . . . * 

Profit & Loss 

ToWm. Hay . .'.'.' 
// 1st Co. Shipment to Liverpool 



$4320. 



4000 
320 



Sundries, Dr. to Ship Roscoe & owners 
K. Morris 
•Profit & Loss . ' ' 



// C. Hartwell . . ..." 

" Ship Roscoe, my J 

// Wm. Hay . .'.'.* 



2500 
200 



7450 



5 
9 



6 
11 

9 



6 

12 

5 



R. Morris, Dr. . 

To Ship Roscoe, my J . 



30. 



6500 



Sundries, Dr. to Profit & Loss . 

1st Co^ Shipment to Liverpool, to close acct. . 

bnip Koscoe, my i, to close account , 

» — ~~^ -.^- — _ 

Profit & Loss, Dr. to Sundries 
To Cash . . • • • 
" " R. Morris 



361 
3308 13 






1132 29 



, '• ^^Ity^^' °^* ^'""''^^ ^- *b« P-P-«on of these goods that he has taken 
i 2. How is the net proceeds and Hay's share found? 

I '• ?hU'er "^ •^^'^ ^" ^-«* * ^- a^L for these premiums on Ex- 
I 4. What is the object of this entry? i 

6. How is this balance of interest ascertained ? ! 



G 



14 



2500 

I 

f 

357 50 

6971 25 

471 25 



280 



40 



2160 
2160 



2700 



217 50 
3616 25 
1808 13 
1808 12 



6500 



3669 13 



1099 23 
33 06 



9: 



SET II.— DOUBLE ENTRY BOOK-KEEPING. 
ON THE DETECTION OF ERRORS. 

1. If the Day Book, Journal, and Ledger have been carefully checked according to our 
previous directions, we may presume that all is thus far correct. If our trial comes out 
incorrect, our attention will, therefore, be first directed to its own additions and those of the 
Ledger. Then see that all the accounts are taken off correctly, and upon the proper side of 
the sheet — that the amounts are correctly forwarded from one page to another. Then exa- 
mine the additions of all the Journal entries, to be certain that the debits and credits are equal 
upon that book. If the error is not found by these means, the posting from the Journal to 
the Ledger since the last balance will have to be all checked over again — a formidable under- 
taking in a business of any magnitude ; but there is no other means of finding the error. 

2. On the correction of errors in the Ledger. — It is not easy to lay down pre- 
cise directions for correcting errors in all cases. But it may be useful to the learner to have 
some general directions, and also to be guided in all cases by the following general rule — 
always to make the correction explain itself, by distinctly referring to the place of the error, 
and the error to refer to the place of correction. It is not sufficient merely to write " To 
Error" or "By Error, '^ because either the book-keeper, or his successor, may be called upon 
for an explanation of an entry of this kind. 

3. If a post be omitted at the proper date, enter it under the date of the last entry, with 
the back date in the title column, in a parenthesis, thus (July 19) ; the page of the Journal 
in its own column. 

4. If two accounts be opened with the same person, close the one into the other, " To," or 
"By A. B.'s acct., fol." — footing and ruling off the closed account, as a settled account; 
stating the particulars of such transfers at A. B.'s open account with the Journal reference. 

5. If you have posted an entry to the wrong side of an account, erase the figures in the 
amount column, leaving a couple of ciphers to fill up the space, and leave the rest of the 
line without erdsure : it serves to explain the alteration and does not deface the page 
Then make the post to the proper side. 

6. If you have posted to a wrong account, dispose of the error as directed in the last 
paragraph ; then post the entry to the proper account. 

7. If the same entry be twice posted, leave ciphers in the money column of the last 
entry as before directed. If you have room in the title column, insert (see last entry) or 
such explanation as the case require, on the same line with the correction. 

8. I do not approve of correcting errors by counter entries if it can be avoided, as it gives 
the account a distorted appearance. The merchandise account, for instance, may by this 
means be made to exhibit an amount of purchases and sales far beyond the reality j while 
the chief object for keeping this account is to show these amounts correctly. If, however, 
the error is discovered after the account is footed and forwarded (a thing that ought never 
to be done until it is checked), then the correction can only be made by a counter entry, or 
by footing the column and deducting the error from it. 

9. If you have discovered an error in the addition after the account is footed and for- 
warded, note it "short" or "over added,' $ — corrected June ■ — , fol." — and make the entry 
of the correction, as usual, refer to the folio of the error. If there be many of them, it may 
be proper to make a Day Book entry of them ; but this can only be done with those errors 
requiring a double entry for their correction. 

10. On correcting errors in the Journal. — This book, like the Ledger, not being 
a book of original entry, when it can be done without defacing the page, there is no objec- 
tion to correcting an entry by erasing a figure or two, and writing over them again. But 
if the error make it necessary to cancel the whole entry, it must not be scored nor scratched 
out, but mark it in the margin " void, corrected page," — then make the corrected entry in 
the first vacancy, giving reference to the place of error. 

11. On correcting errors in the Day Book. — It should be a rule never to erase any 
essential particular of a record on this or any other book of original entry. If an error admits 
of correction without cancelling the whole entry, it may be done by running the pen lightly 
through the name or figures, leaving them legible, and writing the correct ones over them. 

12. If the error makes it necessary to cancel the whole entry, you will proceed as just 
directed for the same purpose in the Journal. 

9S 



SET II.— DOUBLE ENTEY BOOK-KEEPING. 



ON OPENING AND CLOSING THE LEDGER. 

After journalizing a page or a month of the Day Book, the learner will open his Ledger 
according to the directions in note 1, page 32. Then proceed as there directed with the 
posting and checking, until the whole business of the set is posted into the Ledger. Then 
add up all the accounts that remain open, inserting the amounts on each side in pencil in 
the margin. From these amounts make up your trial balance, referring to those on page 36 
for the form, and to our directions for detecting errors on the last page if it comes out wrong. 

It may be proper here to fix the pupil's attention distinctly upon the object for closing 
the licdger, which is not only ^ to ascertain the gain or loss, but to record it upon the 
face of the Ledger in such a manner as to afford satisfactory evidence, at any future period, 
of the true state of the business at this time. — See Notes 1 to 4, p. 18. 

For this purpose the Double Entry Ledger furnishes the particulars for making up ' two 
statements, both of which will exhibit the same result. 1st, a detailed statement of gains 
and losses in the Profit & Loss account, from whence the stock, or original capital, receives 
the result, and then immediately shows the present net capital. The second statement, 
which must always confirm the correctness of the first one, is made up by presenting a de- 
tailed account of Effects and Liabilities in the Balance Account, upon the principles before 
explained, Notes 2 to 6, p. 18, and Note 4, p. 32. The difference between the amount of 
the Effects and that of the Liabilities must be the present net capital, and if the operations 
are all correct will always agree with the result produced by the first statement. — See Notes 
1 to 6, Balance acct., p. 35. This agreement between the Stock and Balance account is 
always a certain consequence of this mode of keeping accounts, because the net gain or loss, 
which is finally made to show itself in the Stock account, must always produce a correspond- 
ing increase or decrease of property, which affects the Balance account to precisely the same 
extent that it does the Stock account. Therefore, as the balances of property agreed with 
the credit side of stock (Rule 11.) at the opening of the books, they must continue to do so 
ever after, so long as all the steps of the process are strictly correct. The learner will now 
derive farther assistance from the following 

RULES FOR CLOSING THE LEDGER. 

Rui E I. All personal accounts close To or By Balance. 

II. All accounts of property belonging to ourselves, close as follows : — 

Case 1st. — If all be sold, paid away or lost, and the account remaining open. 

close it To OR By Profit & Loss. 
Case 2d. — If all or part remain on hand, credit the account first By Balance for 
the value remaining in hand, and if this entry does not close it, close as in 
Case 1st — To or By Profit & Loss. 

III. All accounts representing gain or loss, close To OR By Profit & Loss. 

IV. When Profit & Loss has received all its transfers, it closes into Stock — never 

into Balance — and after all other accounts are closed, Stock finally closes 

into Balance. 
V. Bills Payable always closes To Balance for the amount w^ owe on our notes. 

When they are all paid, the account must be self-closed. 
It may be stated also as a general rule, that no property account can close To Balance. 
This part of Book-keeping is rarely ever understood, without repeated and attentive study ; 
but as no person is entitled to call himself an accountant who cannot close a Ledger, the 
author trusts that all learners who desire to excel in the profession, will give this part of 
the subject that attention which its importance deserves. If they will but take half the 
pains to study it, that he has taken to explain it, their perseverance will be amply repaid. 



1. 

2. 

I. 
n. 



in. 

IV. 

v. 



What is the object of closing the Ledger? 

What particulars does it furnish for the purpose of ascertaining the present net capital? 

How do all personal accounts close ? 

How do property accts. belonging to ourselves close when all is sold, paid away, or lost, and the acct. stiU remaining 

open ? 
How if all or part of the property remain in hand? 
How do all accounts representing gain or loss close? 
How does the Profit & Loss account close, and when does it close ? 
How does the Bills Payable account close while we owe any thing on our notes? 
How does it close when all our notes are paid ? 

99 



INDEX TO LEDGER B. 



A. 




Merchandise . . , . 


a 


1 






Morris, Robert 


• 





Bills Receivable 


3 


Mor/is, Robert, Sales . 


• 


7 


Bills Payable . . . . 


. 4 


Merchants' Bank Stock 


• 


4 


Balance Account 


. 13 


• 






Cash 


2.12 


New York Insurance Office . 


• 


8 


Commission . ,. 


8 


1 






Carter, James 


. 5 


0. 






City Bank Stock 


. 10 












Profit & Loss . . , . 


• 


6 


D. 




Q- 






Estate of A. Lenox 


.10 






First Co. Sales 


9 


R. 






First Co. Shipment to Boston 


.11 


1 






First Co. Shipment to Liverpool 


11 


Second Co. Sales 


• 


12 






Shipment to Liverpool 


■ 


7 


0. 




Stock 


• 


1 






Shipment to New Orleans 


• 


7 


Hartwell, Calvin . 


.12 


Ship Hudson .... 


• 


6 


Hay, William .... 


3 


Ship Roscoe, my J . 


• 


9 


House 44 Broadway 


. 4 


Ship Roscoe and owners 


• 


9 


House 49 Cedar Street 


. 10 


Second Co. Shipment to London 


• 


11 






Second Co. Shipment from New Orleans 




L 




to London .... 


• 


11 


J. 




Taylor. John, <& Co. . 


• 


8 






Third Co. Adventure . 


• 


11 


K. 




U. 






Lenox, Charlotte . . . . 


.10 








Lenox, Robert .... 


. 10 


V. 










Walker, James 


• 


7 






Warden & Bell .... 


• 


5 


t 




X. 

Y. 

Z. 







Caution to Young Book-keepers. — Always index an account before you head it in 
the Ledger. Without this precaution you are liable to forget it occasionally, and afterwards 
to open a second account with this same individual : and unimportant as this may appear 
to the inexperienced, they will find it will sometimes lead them into very troublesome and 
vexatious mistakes. ^ 

100 






Dr. 



STOCK. 



Cr. 



1887. 

Jan. 

June 



30 



To Sundries 
It Balance 



fol. 




50 



50 



The learner is referred to the Introductory Ledger for all the 
exercises that will apply to this one.— See Stock acct., p. 33. 

1. Is this acct. not usually kept without any entries from the 

time of opening until closing? 

2. If some part of the Liabilities were left out at the opening 

of the Books, what account should it be afterwards 
carried to ? 

3. When collections of doubtful debts (usually left behind in 

the old Ledger when opening new books) are made, is 
thiano t the proper account to credit for them? 



1867. 

Jan. 
Apr. 
June 



June 30 



1 
10 
30 



By Sundries 
If Mer's Bank Stock 
II Profit & Loss fol. 

64344.50 
2800. 

61544.S0 



By Bal. 



1 

8 
6 



31300 
6000 
28044150 

64344 pO 



61544 50 



It is ; but there is no irregularity in carrying an entry to it 
like that on the 10th April, above. 

2. Either to this or the Profit & Loss account. It would not 

be advisable to encumber this account with trifles. 

3. It will make no difference in the final balance, whether en- 

tered here or at the Profit & Loss acct. ; but, for rea- 
sons before given, large amounts of this kind ought nc 
to appear in the Profit & Loss. — See note 3, p. 30. 



MERCHANDISE. 



iser. 
Jan. 



Feb. 

Mar. 

May 
June 



1 
3 

15 
20 
24 
1 

18 
12 

18 
1 
18 
25 
30 



To Stock 

Bills Payable 

Cash 

Bills Payable 

J. Carter 

Bills Receivable 

Sundries 

Bills Receivable 

Sundries 

Morris' Sales 

2d Co. Sales 

Sundries 



// 



II 



II 



It 
II 



3 
4 
6 

» 

11 
i2 

'/ 13 

1st Co. Sales 5083o.iojl4 
Profit & Loss fol. ' 6 



3000 ; 

1000} 

1800 j 

16001 
200 1 
5001 
[1119610 

1000 

5980 

3240 

3814 
12000 
. 3000 
I 2500 
13743 12 



64573 22 



See Mdse. acct. p. 33, and directions for ruling, p. 66. 

1. What difference is there between the closing of this account 

and any other account of property ? 

2. Supposing it is required to know the gain or loss upon Flour, 

Cotton, or any other branch of your Merchandise, how 
is it to bo done ? 



1807. 

Jan. 



Feb. 



Mar. 
Apr. 

May 

June 



31 
10 1 

! 

15 1 
16 

19! 
20 : 
12 

18 

|28 

5 
20 
28 

5 
10 
15 
13 
131 

1 
30 



By Cash 

Bills Receivable 
James Carter 



Ship Hudson 
Shipm'ttoN.Orl's 
J. Taylor & Co. 
R. Morris 
Bills Payable 
N. Y. Ins. Office 
Sundries 
1st Co. Sales 
Sundries 

Ship't to Liverpool 
Sundries 
// 



// 
R. Morris 

iYlaSe. 18128.22 

jBui. p.I.B.p )64573.a 
^ '^ 60830.10 



4 
4 
5 
6 

7 
8 



11 

12 



300 
3000 
452 
108 
600 
400 
5900 
2760 
600 
200! 
500 
36901 
33551 
3240! 
2500 
3000 
4600 
2400 
30001 
5000 
840 



ia,| 18128 |22 
"^«^ 6457322 



.;( 



1. There is no essential difference, except in the manner of 

finding the balance in hand. 

2. Open an account for the Flour or whatever branch of this 

account you desire to show its own gain or loss, and 
conduct and close it in every respect like the Merchan- 
dise account. 



Note.— Be particular to write the " Balance" closing entries in red. No others are brought down or forward, and no othen 
Bhould be written in this color.— Note 5, Stock acct., p. 33. 



101 



Br. 



CASH. 



Cr 



Dr. 



BILLS 



RECEIVABLE. 



Cr. s 



1887. 

Jan. 



\\\ 



1 
3 

16 
18 
24 
30 



Feb. 



To Stock Led. A. f. 2. 
// Mdse, 
// J. Carter 
// House 44 Broad'y 
'/ B. Receivable 
// Sundries 



31 // B. Payable 



10906.70! 

6680. 

4226.10 




' 



Mar. 



5 

6 

12 

25 

28, 



ToBal. 

" R. Morris' Sales 
B. Receivable 






Sundries 
Profit & Loss 
Sundries 





3 



5 



nttSJB 



1 

2 



12 

17 

28 



To Bal. 
// Wni. Hay 
// Ship Hudson 
H Mdse. 

II Sb.Roscoe& Owners 
n N.Y.Ins. Co. 
II Estate A. Lenox 
// Sundries 
// Mdse. ?^;» 



1090670 



4226170 
360 

796 40 
2000j 
2000, 

400! 

4822122 
2810 16 



17415 48 



70 



8 



11641.90 

I 



31 To Bal. 
Apr. 20i // Sundries 



6462 
2500 
1850 

255 
1800 
3690 
7500 

104 20' 

500 

24661 90 



11 ' 



221 



Forward to fol. 



11641 90 
9 2017 70 
10 1520 80 



12 



15180 40 



18«7. 

Jan. 



3 By Mdse. 



16 

18 
20 
30 



Feb, 



Mar. 



B. Payable 
II House 44 Broad 'y 
II Ship Hudson 
II II **>• 

// Bai carried down 



5 
12, 



18 



Apr. 



20i 
25 

28 



2 
4 

12 
16 
17 
25 
31 



By Mdse. 

R. Morris' Sales 

// 

// 
Ship't to N. Orl's 
J. Taylor & Co. 
House in Broad'y 
Profit & Loss 
R. Morris 
Bills Payable 
R. Morris' Sales 
Bills Receivable 
Sundries i«»2.re 

Bal, carried down 



1800 
1300 
280 
2100 
1200 

4226 



70 



10906 70 



17415 



By Ship Roscoe my \ 
Sh.Roscoe&Owners 
Bills Payable 
Mdse. 

Estate A. Lenox 
Sundries 
1st Co. Sales 
Sundries ^^"^ 

Bal. curried down 



1 
5 

10 



15 
20 
22 



// 



By B. Receivable 
Ship't to Liverpool 
R. Morris 
J. Taylor & Co. 
Sundries 

1st Co. Ship't to B'n 
Sundries 
2d Co. Sales 
Sundries 

Forward to fol. 



24661 



8 



55 



7457 



1. The leamer'a attention is here particularly directed to the operation of continuing an account upon a new page. If we were 
balancing the account here, the expression of the closing entry would be, " Balance in hand carried forward,"— not " car- 
ried down ;" and the new account would open, " Balance Bro't" forward. The columns should never be footed in ink until 
checked. Never forget to leave a line to foot the columns upon. The same directions apply to all other accounts.— Note 
2, Wood's acct., p. 15. 

102 



1. Is it not better to post the debit and credit of each note 

on the same line opposite each other ? 

2. Does the manner of conducting this accoitnt not form an 

exception to Rules VI. and VII.? 

3. Why is this deviation from the rule for conducting other 

property accounts ? 



iserr 







1 II! 18W. 













Jan. 


1 To Stock, 


1 


3000 




t Jan. 


24 


By Sundries, 


2 


1000 




10 // Merchandise, 




3000 




Feb. 


6 


II II 


3 


800 1 




18 


II J. Carter, 


2 


600 




12 


II II 




600 






30 


// Sundries, 




1515 75 






It Cash, 




2000 






31 


// Bills Payable, 




800 






18 


II Mdse., 


3 


' 1000 




Feb. 


9 


// Morris' Sales, 


3 


2100 






28 


// Cash, 


5 


4444 '44 




12 


// Bills Receivable, 




i 300 




Mar. 


16 


// Wm. Hay, 


7, 


300 




25 


// Cash, 


4 


, 2000 






17 


// Sundries, 




500 








// // 




' 4444 44 


Apr. 


5 


II Ship't to Liverpool, 


8 


4500 






28 


// Sundries, 


5 


2011 ! 


1 


20 


II Cash, 


9 


2011 




Mar. 


12 


II Morris' Sales, 


6 


4500 




22 


// // 


10 


' 1515 75 






// Estate of A. Lenox, 


7! 


1700 




25 


// R. Morris, 


1 


2000 




17 


II Sundries, 


1 


400 


May 


25 


II Cash, 


12 


7000 




20 


// Estate of A. Lenox, 


1 


1340 




31 


// Sundries, 




1 1740 


Apr. 


1 


II Sundries, 


8= 


2063 


June 


12 


II Cash, 


13 


2100 


May 


13 


// // 


11 


7000 




18 


// Sundries, 




2063 




18 


// 2d Co. Sales, 




3000 






// II 34074.19 




500 


June 


18 // Sundries, 
25 II II 


13 


2000 
980 


1 


30 


II Balance, 




■ 1 




• 

30 


42754.19 
34074.1» 






19 










1 


19 




42754 


„.- 


^2754 




S680. 




To Balance, 


8680 






See Bills Receivable account, p. 33. 





















1. It is, where there are no endorsements : but it is better not 

to occupy the learners attention with this mode of post> 
ing it until he has learned the principles — See p. 167. 

2. It does so ; it is always debited and credited for the /ace of 

the bill only; not for what it costs or what it brings in. 

3. It is done for the purpose of making the balance of the 

acct. agree with the balance of notes on hand. 



WILLIAM 



iwrr 
Jan. 



To Stock Ledger A, f. 2,3000 



Mar. 2 To J. Walker, 5 600 

16 // Bills Receivable, 7 300 

Apr. 15 // Sundries, i 9 1799 

May 4 // Merch. B'k Stock, 11 2500 



June 



30 



II Balance. 



5199. 



tbl.il3 lOSia 12 



See Form III., p. 116, and 
Morris' account, p. 105. 



16012 12 



1867.^ ~ 

Jan. 30 By Sundries, 



Feb. 12 
Mar. i 1 

5 

Apr. I 5 

15 

June 1 

28 



By Ship't to N.Orleans 
// Cash, 

II 1st Co. Sales, 
// If II 

II R. Morris, 
II Sundries, 
// // 
// II 
II Ship Roscoe & Own. 

16012.12 
5199. 



ioei3a2 



2 3000 

3 1500 " 

5 2500 
I 450 

6 1400 ; 
' 8 2000 I 

9 1065; 

13 3129 

14 2160' 
1808 12 

1601^12 



June 30 By Bal.*^ % rendered, 




103 



•v 



Jlr. 



II 



BILLS 



PAYABLE. 



Cr. 



IMT. 

Jan. 16 
Feb. 18 
Mar. 4 
5 
Apr 22 
23 
4 
8 

June 18 
3u 



May 



To Cash, 
'/ Sundries, 
// Cash, 
// Mdse., 
II Sundries, 
II Cash, 
// // 
// // 

// R. Morris 
'/ Balance. 



1 
4 
6 




1300 

1600 

1400 

25001 

8000 
601 

2222 22 
202 70 
112 30 



iser. 
Jan. 



24865 44 



See Bills Payable, p. 34. 

1. Ifi it not found conTenient to post the debits and credits 

npon the same line, aa described in the Bills Keceivable 
acct.? 

2. Why then was it not introduced here? 

8. How does this account close and re-open when posted in 
this way? 



Feb. 



Mar. 
Apr. 



1 By Stock, 
3 // Mdse., 
15 // // 

20 1 II Ship Hudson, 
31 // Bills Receivable, 
II Sundries, 
// Mdse., 

II R. Morris' Sales, 
II R. Morris, 
II Sh. Roscoe&own'rs 
II Ship't to Liverpool, 
// R. Morris, 
II John Taylor & Co. 
// Sundries, 
// 2d Co. Sales, 
May 31 ii R. Morris, 
! June 18 // Warden & Bell, 



1 

// 

20 
4 

j 5 

20 



4 

5 

8 



tlO 
12 

13 



24865.44 
17938.22 

8027.22 



300 
1000 
1600 
8000 

800 

600 
2222 22 
2222 22 
25001 

400 

16145 
4125 

601 

145 
3000 

112 30 
1160! 

24865 44 



June 30 By Balance, 



6927 22 



1 



1. I recommend this mode of posting both bill accounts, in 
all kinds of business. 

2. Because it is desirable to avoid distracting the pupil's at- 
tention with too many matters at once, and we have ex- 

1 emplified it in our Bill Accounts, p. 167. 

|j 3. Precisely like the Bill Book, p. 50. 



HOUSE 44 



BROADWAY. 



1867. 



Jan. 1 To Stock Ledger A, fol. 3 15000 
18 // Cash, 2 w 280 



Feb. 18, // // 



IMW. 

181. 



June 30 To Balance, 



201 

15481 

15000 



1. What is this account debited and credited for? 

2. How does it close ? 

3. How is the first closing entry of $15000 found? 

4. How is the second closing entry found ? 

6. What does this difference represent, and what is done 
with it? 



1807. 



Jan. 18 By Cash, 

May I 1 j ^ 1 

June '8^' // B-')r'Tv"v 

30 // Profit & Loss, 



300. 
15300. 



2 


150 


10 


150 


1 


ljtl!*fl 


f. 6 


181 

1 




' 


!l5481 









has 



1. It is debited for its cost and credited for what it 

brought me in.— Rules VI. and VII., p. 39. 

2. By Rule II., p. 99. 

3. It is what we value the house at. — See first debit entry. 

4. It is the difl"erence between the two sides after the first 

closing entry is made. 
6. It is the loss upon the property, and we debit Profit k Loss 
for it. 



MERCHANTS' 



BANK STOCK 



Apr. 10 To Stock, 8 

May 4 // Profit & Loss, 11 



5000 
750 

^75^ 



1- How is this account kept and closed? 



i88r. I - 1 
May 1 By Cash, 

1 4 // Sundries, 





10 

11 


250 

5500 




5750 

1 



1. This is a property account, and is conducted by the same 
rules as all other property accounts. The property 
being all sold on the 4th of May, the account was ther, 
closed by a Day-Book entry. — See Note 6, p. 80. 



104 



Dr. 



ROBERT 



(London) 



MORRIS. 



Cr. 



S 



). 11 



1867, 

Feb. 18 
20 

Apr. j 5 
10 
^5 

May 31 1 

June 1 
12 

28 



m 



To Sundries 

n B. Payable 

// Sundries 
II 11 
II II 
II If 

II Commission 

'/ Sundries 
// // 
// // 

II S. Roscoe & owners 

II S.Roscoe.myiS| 

5676.69 



June So To Bal. 1^ acct. Bend. 



f 



4440 
2500 

8 2166 25 

9 4980 33 
10 2400 

12 569122 
40 i 

7756 66 

13 7218 
14 1 1 4000 

2500 
6500 _ 

60192 46 

J 

59 



ii 



5676 



1. What does the debit and credit side of this account show? 

2. How do they close ? 

3. Why is the expression " Rendered" annexed to the Balance 

brought down ? 



1807. 

Jan. 1 By Stock. Led. A. fol. 

OFeb. 1 // Mdse. 

I 25 // Cash 

' 28 // Sundries 

Mar 12 w Morris' Sales 

Apr. ^0 . II 2d Co. Sales 

May 8| // Sundries 

18 1 II 2d Co. Sales 

June 18 II Sundries 

30 // Profit & Loss ^^^^ 

II iial. 10 



I 



2 2000 
3| 8888 88 
4* 1995 
5 444444 
7 9052 
ioi' 4000 
1 4444 44 
4093 05 

13 5565 

14 33 06 

i;; .-!.; ■■ 5ii 
50192 46 



f 



: 1. All personal accounts are alike, and are debited for year 
account against them, and credited for their accotmt 
against us. — Note 3, p. 23. 

2. To or By Balance. 

3. Because a statement of his account has been sent him^^ 

See p. 114. 



WARDEN 



& 



BELL. 



1867. 

Jan. 24 To James Walker 
June 18 // Sundries 



2 500 
i3 11160 

11660 



11867. 

Jan. 
June 



1 
1 



By Stock, Led. A. fol. 
Mdse. 



// 



1. When was this account footed and ruled oflF? 

2. Is it always necessary to close an account every time it is 

settled? 



2 500 
12 11160 

j 11660 



1. On June 18, when we paid him off. 

2. There may be cases when it is not absolutely necessary to 

do so ; but as the omission of it sometimes leads to very 
troublesome consequences, our advice is, always to make 
it a rule to do so.— See note 1, Wood's Account, p. 15, 
and note p. 20. 



JAMES 



CARTER. 



1867. 

Jan. 10 To Mds& 
15 // a 



16 



To Mdse. 



19 // 



II 




I' 1867. ' 

452 Jan. 16 By Cash 



1. This account was closed on the 15th and 19th; would the 
balance struck on the 19th not have served for both? 



18 By B. Receivable 



20 



II Sundries 



560 



560 



600 
400 

1000 



1. It would ; but it is better to close the old account every 
time it is paid. 



105 



6 


Dr. 


SHIP. 












HUDSON. 


Cr. 






1867. 






. 1 


1867 


1 








Jan. 


20 To Sundries 


2 


16000 




Mar. 


2 


By Cash 


5 


1850 






30 // Cash ™^ 




1200 




{May 


4 


„ „ uso. 


10 


3500 




June 


30 II Profit & Loss fol. 


6 


4150 
21350 


( 


Jane 


30 


// Balance tmi f- 

17300. 
4150. 


13 


ilUuUU 

1 






30 




21350 

1 




June 


To Bahnce 


16000 








1. How is this acconnt kept, and how are the first and second l. This account is in every respect like " House in Broadway," 
closing entries found ? I and closes by the same rule. — See that account, p. 104. 


PROFIT &; LOSS. 


IWT. 


1 






1 


'\m.^ 






1 


Jan. 


20 To J. Carter 


2 


200 


1 


Jan. 30 


By Sundries 


2 


1575 




31 // B. Payable 




3 


30 


Feb. 25 


// Cash 


4 400 


Feb. 


6 // B. Receivable 




3 


60 


;28 


// II 


5 377 78 




12 // » 


3 


300 








u Sundries 


|l 376 72 


18 // Cash 


4 


181 




Mar. 


6: II 1st Co. Sales . 


6 358 




25 // // 




355 

7 


56 




12 


II Shipm'ttoN.Orl's 




1507 1 


Apr. 


22 // Sundries 


lo' 


05 






// Morris' Sales 


7 


18' 


May 


31 » B. Receivable 


12 


400 






17 


// Sundries 




4 20 


June 


1 // Sundries 


13 


111 




Apr. 


1 


// Bills Receivable 


8 


63 




18 // // 




160 






20 


II Cash 


9 6 70 




28 // II 


14 


320 






22 


// // 


10 


5 05 




II S.Roscoe& owners 




200 






25 


// R. Morris 




400 






30 II Sundries «"» 




1132 


29 




30 


// 3d Co. Adventure 




500 






If Amount to date 
fHo.inBr'dway«^«'f. 
n Stock for net gain f. 


4 
1 


"3373 
181 

28044 


80 
50 


May 
jjune 


4 

8 

13 

18 

25 
1 


// Mer'ts Bank Stock 

// Sundries 

// // 

// 2d Co. Sales 

K Cash 

// // 

// Sundries 


11 
12 


750! 
355 56 
140 
106 05 
18 90 
70 
1176 32 






/ 








1 


25 


// Bills Receivable 13 


180 






/ 












II 1st Co. Sales 


14 471 25 






/ 






> 




30 


// Sundries ^«»«^" 

// Amount to date 
H Mdse. fol. 
M Ship Hudson . u 


' 3669 13 

10969 41 
1 13743 12 
6 4150 






/ » 












H Commiss'n SS " 


8 2736 77 










31599 


30 






28044.fi0 




31599 


30 

are 
lole 

•ent 
iges 
r in 

eby 
)wn 

by 


l.Why 

2. Whs 

I 

3. Wha 

a 

4. As 8 

1 
i 


istl 
it ar 
iexe( 
it is 
iccot 
I gei 
Icco 

QtO 1 


See Profit & Loss Account, j 
lis account footed on both sides 
e these transfers, and why is th 
i to them? 

the object for bringing these 
int? 

leral rule, no entry passes from 
ant: neither has it any balanc 
aew account : is there no except 


).36. 
Jun< 
e nc 

tran 

Bal 
e to 
on t 


3 30? 
)te"fol." 

Bfers to t 

ance to t 

bring do 

this rul( 


— 

an- 

hin 

his 
wn 

3? 1 

i 
1 

1 


l.The 

P 

c 

2. The 

a 

' { 

3. To 

a 
I 

4. The 


Be \i 

lace 
olun 
yar< 
coon 
rom 
be 6) 
com] 
acer 
yth 
re s 
artn 


'ere the additions for the Trial 
d there to save the trouble of ad 
an again after the transfers are i 
} the gains and losses fouijd by cl< 
nts named. " Folio"' distinguishes 
those of the Journal, which are i 
ime column. 

jlete our account of gains and lo 
tain our net increase or decrease 
e small marginal figures. — Note 
ire but few exceptions, save i 
ership settlements. — Part II., p. 


Ball 

ding 
nade 
)sing 
5 the 
)lace 

isses, 
of c 
4, M. 
bhose 
177. 


ince, and 

up the wl 

' the difiFei 
Ledger ps 
d togethe 

and ther 

[ipital, she 

Ise. p. 33. 

created 



Dr. 



JAMES 



WALKER. 



180T. I I 

Mar. 5 To Mdse., 

30 '/ 3d Co. Adventure. 
Si II Sundries, 



Apr. 
May 



6 
10 
111 



600 

2500 

600 



3700 



1887. 



Jan. m By Warden & Bell, 

Mar. 2. // Sundries, 

Apr. ^0 II 3d Co. Adventure, 



2 
5 
9 



Cr. 

500 
1200 
2000 

3700 



B. MORRIS' 



SALES. 



1887. 




Feb. 


1 To Sundries, 




5 // Cash, 




12 II II 




20 // II 


Mar. 


12 // Sundries, 








Repeat Rule X., p. 41, and see Note 3, p. 

How is Morris' net proceeds found when all the goods are 

sold? 
How are consignment accounts closed and reopened when 

the Ledger is closed with part of the property on 

hand, and no sales rendered? 
How if you render account sales of the part sold? 



1867. j 

Feb. ' 5 By Cash, 

9 '/ Bills Receivable, 

18 // R. Morris, 

' !i Bills Payable, 

Mar. ,12 // Bills Receivable, 

// // Mdse., 



1213D. 
iWTS. 




There was $9676 Balance at the credit of the account 
when the sales were completed. Our commission is 
$606, storage and advertising $18. After deducting 
these charges the remainder belongs to Morris. It is 
therefore evident that this balance of $0676 belongs to 
these three accounts.^-See Journal entry March 12, p. 
83, and Account Sales, p. 117. 

They close and re-open by Double Balance. — See Commis- 
sion Sales acct., Part II., p. 169. 

The acct. closes as above, and does not re-open until the 
sale of the goods on hand recommences. — Note 4, p. 68. 



SHIPMENT TO 



(J. Taylor & Co.) 



NEW ORLEANS. 



1867. ! ' 

Feb. 12 To Sundries, 
Mar. 12 // Profit & Loss, 




5800 



Repeat Rule XI., p. 41, and Rule 11., p. 99. 
1. What kind of an account is this, and why was it closed on 
the 12th March? 



18flT. ' ! 

Mar. 12 By Mdse., 



6 5800 
5800 



1. It is a property account, and was closed on the 12th March 
because full returns were then received. — Note 5, p. 8Ql 



SHIPMENT TO 



(Colnmbia) 



LIVERPOOL. 



1867. 

Apr. 



5 To Sundries, 



June 30 To Bal. bro't down. 




1867. 

J une 



30 



By Balance, 



£13 NHio' 



1. When the accounts are to continue in the same Ledger, ; 1. It would; but I wish to show the universal application of 



would it not have answered as well to have made the 
entry in the Balance account, without closing and re- 
opening this acct. ? 



my rule for closing all property accounts belonging to 
ourselves. This example differs from any previous one, 
as the property has produced no returns. — Rule LL, 
p. 99. 



I 



106 



107 






Ill 



a 



8 Dr. 



JOHN 



(Hew Orleans.) TAYLOR & CO. Or. 



18C7. 

Feb. 12 To Sundries, 
Apr. 10 ^ N 

K It 



7438.33 
5693.05 



1745.28 



June 30 ' To Bal. ^ % rendered, 



Seo Form n., p. 116, Morris' acct., p. 106. 



3 

8 
9 
9 



644' 
1210 

604 
4980 33 

7438 33 



1807. 



Apr. !15' By 2d Co. Shipm't New 
Orleans to London, 



1745 '28 



May 

June 



18 

30 



91 1600 



» 2d Go. Sales, 6693.05 
// i>:iliin> \ 



11 

o 
O 



l'^ 



4093 05 

1745i28 



7438 38 



COMMISSION 



ACCOUNT. 



1887. 



June 30 



To Profit & Loss, fol. 



6 



2736 77 



1867. 

Feb. 12 By J. Taylor & Co., 

25 // Cash, 

Mar. 5 // 1st Co. Sales, 

12 // K. Morris' Sales, 

Apr. 5 II E. Morris, 

10 // J. Taylor & Co., 

II Sundries, 

May 18 // 2d Co. Sales, 



27361,77 



1. To what class of accounts does this belong? 

2. Why not carry the entries to Profit & Loss at once? 

3. How is this account kept ? 

4. How is it closed ? 

6. Are there not sometimes entries made at this account that 
have to be brought down into new account? 



31 



June' 1 
12 
25 

28 



// K. Morris, 

» II 

II Sundries, 

// K. Morris, 

// 1st Co. Sales, 

// Estate of A. Lenox, 

// Sh.Eoscoe& owners 

2736.77 



3 

4 
6 

7 
8 

9 

11 
12 

13 

14 



33 
5 

72 

606 
105 

6 

3 

396 

396 S5 
278^2 

40 ' 
162 

18 
357 50 

40 
_ 217 50 

2736 77 



1. It is a branch of the Profit k Loss acct. 

2. We could not then know what we made by this branch of 

our business.— See Note 4, p. 24. 

3. By debiting it for returned commissions, and for what we 

may lose by guaranteeing, and crediting it for all we 
earn by agencies. 

4. Always to Profit & Loss— never To Balance. 

5. Very seldom, except in partnership settlements : these are 

explained in the next part, p. 177. 



NEW YORK 



INSURANCE OFFICE. 



1807. 

Feb. 28 To Mdse., 



I 11118*7. 

5 3690 I Mar. 12 By Cash, 

ir=r 



L To which class of accounts does this belong ? 



6 3690 



1. Although it is not with a person, yet it is a personal acct 
and is kept in every respect similar. 



108 



Dr. 



FIRST COMPANY SALES. 



Gr, 



1867. 

Mar. I 



20 
25 

28 
May 4 
June 25 



To Wm. Hay, 
u J.Walker, 
a Sundries, 



To Mdse., 
II Cash, 
II Mdse., 
II Merch. B'k Stock, 11 2500 
// Sundries, uj^. 14 7800 



5 

6 



8l 



450 

600 

1830 

2880 



1867. 

Mar. 



2 By Sh. Roscoe, my i, , 5 2880 

•8807 



1050. 
1830. 



2880 



3240 
4500 
2000 



20040 



See Notes 5 and 6, p. 42, and Rule XII., p. 43. 

1. Why was this account closed on the 5th of March? 

2. How and where does this account close when all is sold? 

3. How if there be none sold, or if the sales are not more than 

enough to cover the charges you have advanced ? 

4. How if there be more than enough sold to cover charges? 



5. Why is this distinction made after the charges are cov- 

ered? 

6. What is done with the balance entry ? 



Apr. 10 By Sundries, 9 9500 

// // IstShip'ttoBost'n, 9 3240 

22 // Sundries, 10 4800 

June 25 // Mdse., S' 1-^ 2500 



7800. 



20040 



1. Because we rendered account sales and settled with our 

partner at that date. — Note 5, p. 80. 

2. It closes To Sundries, by a Day Book entry. — See Note 3, 

p. 80, and Note 2, p. 96. 

3. It closes By Balance, the charges being payable out of the 

first sales. 

4. Credit the account first By Balance for our proportion ot 

the part unsold, then close To Sundries as if all were 
sold. 

5. The amount sold afterwards is pactlj ours and partly our 

associate's. 

6. It is brought down or transferred like all other balance 

enlxies. — See Part n., p. 177. 



SHIP 



(Myi) 



ROSCOE. 



1867. : 

Mar. 2 1 To Sundries, 
June 30 ii Profit & Loss, 



5 

14 



1 !|l 1867. ' ' H 

5000 ; June 28 By Sh.Roscoe& owners 14 1808 13 
3308 13 1 30 // R. Morris, i w J! 6500 

830813 



I 830813 

li=U 



1. To what class of accounts does this belong? 



1. It is a property account, and is conducted and cloeed by 
the same rules as all other property accounts. 



SHIP ROSCOE 



\ 



AND OWNERS. 



1867. ' 

Mar 4| To Sundries, 
June 28 // // 



5 

14 



1250 i 

7450 

8700' 



! 1867. ' ' 

i Mar. 5 By Cash, 

' May 4: II II 
June 28 '/ Sundries, 



1. What kind of an account is this? 

2. How is it closed? 



3. Could this and the last account not be kept under one 

head upon the same principle as Ist Company Sales? 

4. Why? 



6 
lOi 
14 



1800 
4200 
2700 

8700 



1. It is conducted under the rules for personal accounts. 

2. If the debit side be the largest, close By Balance ; but if 

the credits be the largest, close To Sundries, as on the 
28th of June.— See Part II., p. 177. 

3. Not without the risk of much confusion. 

4. Because the credits of the former account are private pro- 

perty; but the credits of the latter are joint property, 
and could not therefore be placed in one account. 



109 



10 Dr. 



ESTATE 



LENOX. 



Gr. 



1867. 

Mar. 16 To Cash, 

17 '/ w 
May 31 // Bills Receivable, 
June 28 // Commission, 389o. 

30 // House 49 Cedar St.. 



u 



II Balance, 



f. 



7 


2500 




; 10 


12 


i 1340 


14 40 


10, 140 


13 


'20010 




33040 

- 







1. What is the object of this account, and how is it kept ? 



2. How docs it close and reopen ? 

3. SapiK)3e the time has arrived when we have to pay over 

the above balance, §29010, to the two legixtees, to each 
one half, and R. Lenox takes the house in Cedar Street 
at its valuation as part payment^ and C. Lenox the 
bank stock, also at our valuation, as part payment of 
her legacy ; and we pay over each the remaining bal- 
ance due them in cash, how do we close all these ao- 
cooiits? 



1M7. 1 I 

Mar. 12 By Sundries, 

20 // B. Receivable, 32540. 
June 30 n City Bank Stock, f. 




By Balance, 



131200 
1340 
10 500 



33040 
129010' 



1. It is to show the details of our administration of the Lenox 

Estate, and is opened and conducted like a personal ac- 
count. 

2. After it has received its transfers from its branches — see 

the two next accounts — then close as a personal acct. 

3. By a Day Book enti-y, thus — 

Lenox Estate To Sundries to close Acct., $29010. 
To House 49 Cedar St., conveyed to R. Lenox for . . 12000 



R. Lenox, amount already paid per acct. 
" Cash paid R. Lenox for balance of his Legacy 
" City Bank Stock, conveyed to C. Lenox for . 
" Charlotte Lenox, for amount paid per acct. . 
" Cash, now paid balance of her Legacy . . . 



800 

1705 

10000 

500 

4005 



HOUSE 49 



(Lenox Estate) CEDAR STREET. 



1867. i 

Mar. 12' To Estate of A. Lenox, 

17 '/ Cash, 
June, 28 // // S; 



140. 



June 30 To Balance, 



14 




12000 



1. What is this account debited and credited for? 

2. How does it close '. 

3. Why not close To or By Profit & Loss ? 



1887. 

May 

June 



1 

30 



By Cash, 

I, ; . >.-, 12300. f" 

II Estate of A. Lenox, 



10' 300 

13 12000 
10! 140 

12440 



1. Debit first for its value, and for what it costs afterwards , 

credit for what it brings in by sale or rent. 

2. If unsold, credit first By Balance for the value ; then close 

To or By Lenox Estate. 

3. The gain or loss is not ours; it belongs to the estate. 



CITY 



(Lenox Estate) 



BANK STOCK 



1867. 



Mar. 12 To Estate of A. Lenox, T 10000 
June 30 // a u f. 10 500; 



June 



301 To Balance, 



10500 



10000' 



1807. 

May 

June 



1 

30 



By Cash, 

// ijuiuuce, 



f. 



10 

13 



500 

iOOOO 



10500 



CHARLOTTE (Legatee of Lenox Estate) LENOX. 



1867. ; i 
Mar. 31 To Cash. 



8 



500 



You may, if you choose, close this and the following account By Balance, like " Shipment to Liverpool," p. 107; but I have 
shown at Hartwell's Account, p. 112, Hhat there is no necessity for it. 



ROBERT 



(Legatee of Lenox Estate) 



LENOX. 



i80r. I I 
Mar. 31 To Cash, 



8 



800 



110 



Br. 2d Co. Shipment to (R. Morris) 



London. 



Cr. 11 



1867. 

Apr. 10 To Sundries, 

1 1 // Profit & Loss, 



June 



1867. 



9 4980 34 June' 1 ' By R. Morris, 



12 



649 66 



5630 



See Note 2, p. 86, and Note 4, p. 92. 
1. How is this account kept? 



12 5630 
5630 



1. It is kept and closed in all respects like any other consign- 
ment or property account. 



1st Co. Shipment to (C. Harlwell) 



Boston. 



1867. ' 

Apr. 10 To Sundries, 
June 1. II II 



9 3300 
13 3180 



1867. ' 

June 1 By C. Hartwell, 



6480 



See Note 3, p. 86. 
1. What is this account debited and credited for? 




1. It is debited for our proportion of the first cost and the 
whole charges, and credited for the whole returns. 



2. Why not credit for our own share of the returns only as in 2. Because Hartwell accounts to us here for Hay's sliare as 
the last account? lii well as ours. In the last account Morris accounted to 

each partner for his share. 



1st Co. Shipment to (Baring & Co.) 



LiverpooL 



1867. 

Apr. 15 To Sundries, 
June 30 // Profit & Loss, 



9 
14 




See Note 3, p. 96. 
1. This account, like the last, was debited for our share of the 
first investment, why not also credit it for the whole 
returns? 



1867. 

June 28 By Sundries, 




1. In the last account we had charges to deduct from the re- 
turns; in this we have none, we therefore carry Hay'a 
half net proceeds at once to his credit. 



2d Co. Shipment from (R. Morris) New Orleans to London. 



1867. 



Apr. 15 To J. Taylor & Co., 
June 1 // Profit & Loss, 



9 
12 



1867. 

1600 TJune 
^26 66 

2126 66 



See Note 5, p. 86. 
1. What is this account debited and credited for ? 



By K. Morris, 



12 2126 66 
2126 ^<^ 



1. It is debited, like "2d Co. Shipment to London," foronr 
share of the first cost, and credited for our proportion 
of the returns. 



3d Company 



(J. Walker) 



Adventure. 



1867. I ' 

Apr. 20 To J. Walker 
30 



May 



13 



H Profit & Loss, 10 5001 

2500 



To Mdse., 




11 



1500 



I. Why is this account called an adventure in Co.? 



1867. ' ' 

Apr. 30 By J. Walker, 



June i 18 



By Sundries, 



10 2500 j 

2500 
13 1500 



1. To distinguish it from those joint accounts of wliich W9 
are the managers of the sales. — See Notes 9 and 10, 
p. 42. 



Ill 



* ) 



18 Dr. 2d COMPANY 



SALES. 



Cr. 



1867. 

Apr. 20 To Sundries, 
May 18 // // 



10 7185 

11 8689 

15874 



See Note 4, p. 90. 
1. How is this account condacted? 



18W. ■ ' 

May 13 By Sundries, 



18 



H 



II 



15874. 
7185. 



11 8500 
i| 7374 

15874 



Ml 

1. In all respects like Ist Co. Sales, p. 109. We account to 
each partner for his share of the net proceeds. S«v 
form of account, p. 116. 



CASH 



ACCOUNT. 



1867. 



Bro't forward, fol. 2 15180 40 



1867. 



15180.40 
8058.60 

7121.80 



Apr. 30 To Bal. bro't down, 

May 1 // Sundries, 
j 4 // II 

II Merh. Bank Stock, 

8 // Sundries, 

lis // Merchandise, 

' n Sundries, 

18 // 2d Co. Sales, 

// Profit & Loss, 

2f // Sundries, 



15180 40 



31510.70 
2724J2 

28785.78 



7121 80 

10 1200 I 
7700 

11 500 
. 4200 

1500 I 
1640 
560 

12 18 90 
. 7070 i 

31510 70 



Bro't forward, fol. 2 7457 60 
Apr. 23 By Bills Payable, 8058.6o 10 601 

oU, // xi'iXi. c.^A^v^v* u^'.i'.i, I 1I2I18O 



31 To Bal. bro't down, 
June 12 // Bills Receivable, 
18 // Sundries, 
// R. Morris. 



36801.48 
28010.48 




28785 78 
13 2100 j 
563 
5452 70 



May 4 By Bills Payable, 
81 // 



15180 40 



II 



31 

II 



10 2222 22 

11 202 70 



II R. Morris, 2724.92 12 300 



// Bai. earned down, 




June 30 To Balance 



See Cash Account, p. 34, and Note 6, p. 57. 
L Why is this account balanced every month 't 



3690148 
11 8891- 



June 12 ByR. Morris, 

18 // Warden & Bell, 

II Sundries, 

.25| // Bills Receivable, 

w 1st Co. Sales, 

28 // House 49 Cedar St. 

, 30 // Profit & Loss, 38oio.i8 



;^b785 78 



31510 70 



n 



II Balance. 



f. 



13 7200 
lOOOOi 
1660 
800 
6971 25 

280 
1099 23 
S891 



14 



L3 



3690148 



1. Because it must always conform to the Cash Book, and it 
is easier to make it do so by frequently comparing them. 



c. 



(fioston) 



HABTWELL. 



1867. ' I I 

June, 1 , To 1st Co. Ship't g^ ' ' ' 

to Boston, » '^^ 12 6480 

1. Why is this account not closed like all the rest, and what 

is done with the balance ? 

2. Whould there be any irregularity in closing it? 



1867. 

June 28 By Sh.Roscoe& owners 14 3616 25 

, 11 i 

1. We find the balance by the small pencil figures in the mar- 

gin, and transfer it as usual to the balance account; but 
there is no occasion for closing a person's account until 
you have a settlement with him, or wish to transfer his 
account to New Books. 

2. None ; the pupil may close it if he chooses. — See Note 3. 

p. 113. 



Dr. 



BALANCE ACCOUNT. 



Cr. 13 



1S67. 

June 



30 



To Mdse. fol. 

// Bills Receivable 

// House in Br'dway 

// R. Morris 

// Ship Hudson 

// Ship't toLiverpool 

// John Taylor & Co.! 8 

// House 49 Cedar st. 10 

// City Bank Stock 

II Charlotte Lenox 

'/ Robert Lenox 

// Cash 

C. Hartwell 10S294.84 



// 



6I044I5O 



12 



18128 
8680 

15000 
5676 

16000 
8010 
1745 

12000 

10000 

500 

800 

8891 

2863 



108294 



22 


1867. 

June 


1 
30 


59 






28 






75 






84 







ByWm. Hay fol. 3 
// Bills Payable 4 

// Estate of A.Lenox 10 
// Stock for n/c 1 

46750.34 




1081312 
6927 22 
29010> 
61544 50 



108294 



84 



112 



See Notes to Balance Account, page 17 and 35. 
The teacher will now apply the examination on page 36 to this Ledger. 

1. Remarks. — Referring to our previous instruction in closing and re-opening accounts — 
Notes 5 and 6, p. 9 — 1 to 7, p. 18 — 4, p. 32 — 6, Stock acct., p. 33, and 7, Mdse. acct., p. 
33 : we may repeat that re-opening a Ledger means, making a new entry of all the 
EFFECTS AND LIABILITIES, in the heads of the new accounts : and the new accounts re- 
commence immediately under the closing lines of the old ones — ^Note 6, p. 5^ — or, if there 
be no space there, forward under a new head.* 

2. We have closed this Ledger, as we first closed the introductory one, under the supposi- 
tion that the accounts are to continue in the same book. All those accounts that have closed 
into Balance, are therefore re-opened by bringing the balance (entered in red in the old ac- 
count) down into the heads of the new accounts in black. If we had closed with the view 
of transferring the balance to a new Ledger, then this one must remain closed, as you per- 
ceive at the second closing of the introductory Ledger. 

3. We may observe here, that though we cannot well avoid doing so in teaching, in making 
up the Balance Account in business, it is unnecessary to close any personal accounts but 
those with whom you have had settlements ; all that is necessary, is to find their correct 
balances in pencil in the margin — see Hartwell's account last page — and transfer them, as 
if the accounts were closed, to the Balance Account ) and after all is found correct, go over 
all those accounts requiring addition, and in place of closing them, only foot them, noting 
the footing on each side " amt. to date," as we have done with our Profit & Loss account 
before the transfers were made — see p. 106. Leave all the personal accounts open in this 
manner, to receive any riew entries that may occur until you settle with them ; then they 
must always be balanced — Note 1. Carter's acct., p. 105. To exemplify this matter fully, I 
have left open the two Lenox's and Hartwell's accounts — p. 110 and 112; but I have found 
it answer the purposes of instruction better to direct the student, for the first time, to close 
all the accounts without distinction. Ttis is indeed the readiest way to explain what we 
are referring to. 

4. Some authors pass all their closing entries into the Journal, and post them from thence 
into the Ledger. In business, this must incur additional labor without any apparent advantage. 

5. Before proceeding with the general balance, the proof or trial sheet must always be 
first taken off, in business practice. I always take my trial as follows : transfer all the balances 
f/om the pencil figures in the margin of each account, to their respective places in the Profit 
&. Loss and Balance accounts ; leaving all the accounts open for the present. Forward 
the footings of the Balance account only, in pencil. Then pencil the difference of Profit & 
Loss into Stock, and Stock in the same manner into Balance, which must then be even, if 
all be correct : if not, the errors have to be sought and corrected in the usual manner. In 
taking a trial by this method in any extensive business, much labor is saved; but it requires 
great care and accuracy in every step of the process. 

* As with our merchandise account, page 101. which is left closed for tlie student to re-opcn upon a new page. 

H 118 



r 



'I 



I II 



SET II.— DUFFS BOOK-KEEPING. 



Di, 



B. Horns, Esc[., in Acct. GuTTent and 



Date. 




18C7. ' 

Feb. 


18 


Fc 




20 


II 


Apr. 


5 

10 


II 


May 


25 

31 


u 
n 
II 



Items. 



Principal. 



June, 1 



{121 
!28 

m 



For amt. paid your Bill at sight favor R. Banks 
accept'g your Bill @ 10 days, favor of R. Banks 
Invoice of Merchfindise per " Cherub" 
your J Invoice of joint Ship't "^ " Cambria'* 
amt. collected from Capt. Bowline 
Invoice of Shipment to you "^ " Columbia" 
Com'n forwarding 80 packages from Hart- 
well & Thorndike, of Boston 
My i your Acct. Sales joint Shipment from 

New Orleans .... 

My i your Acct. Sales joint Shipment 

*' Cambria" 

Banks' Bill on Gibbs, Son & Bright 
Baring & Co.'s Remittance on my acct. 
Freight collected by you for ship Roscoe 
n. proceeds my \ Ship Roscoe 
Bal. of Int. Acct. at cr. in Acct. Current SS 



// 



4440 
2500 
2166 
4980 
2400 
5691 

40 



25 
33 

22 



II 



5676.59 



2126 66 



5630 

7218 
4000 
2500 
6500 



50192 46 



Whin 
Due. 



Balance due P. Duff this day 



Errors Excepted, 1 

New York, June 30th, 1867. J 



1867. 

Feb. 
Mar. 
May 

Apr. 
Mar. 
May 

June 
Apr. 



June 

May 

May 

Aug. 



Tna. 



4.12 

3.25 

1.25 

12.20 

20 3.10 

31 1. 

^0 



18 
5 
5 

10 



INTE- 

B£ST. 



15 
30 



2.15 
2. 



97|68 
47i92 
19186 
66 40 
40 j 
2846 



26 58 



56 



30 



12i .18 
10 1.20 
20 1.10 



i30 



5676 59 



!1 



2. 



2165 
33 33 

16^7 
651 
33 06 

487 91 



P. Duff. 



1. All well-managed mercantile houses render statements of accounts to all their custom- 
ers and correspondents, and settle and close their accounts every time they make out their 
balance sheet. The above, and the two next forms, are illustrations : this one embraces all 
transactions between us and Morris since our last settlement — from the time that we last 
balanced our books, down to the time of closing them — 30th June. 

2. There are various ways of stating interest accounts, but we have seen none that presents 
all the particulars with so much clearness and simplicity, and in so little space, as this form. 

3. The heading of the columns explains sufficiently the use of each of them. The state- 
ment is drawn from Morris' account in the Ledger, referring from there by the dates to the 
Day Book for particulars, when due, &c. The dates, items, principal, and when due col- 
umns, are filled up on both sides first. Then compute the time of each entry from the date 
in the when due column to the time of settlement— 30th June, allowing three days' grace 
only where notes or acceptances are given or received. — See notes 1 to 5, page 45. Extend 
this time into the time column, and then compute and extend the interest into its column. 
Those entries which we do not know the day upon which they fall due — such as that on May 
8th, Cr. side — are left blank in the interest column, and a Day Book entry will be made to 
adjust the matter as soon as we learn the particulars. 

4. Observe, the date in the when due column, and the figures in the columns to the 
right of it, in the first entry on the 30th June, Dr. side, are to be written in red, because 
this $65 interest belongs to Morris, and is not therefore added in our interest column, but, 
as you perceive, is carried over to Morris' interest column. By the terms of sale which he 
has effected of our \ Ship Roscoe, the money is not due until the 30th August.— See Day 
Book, June 30, p. 96. This account is made out, and interest upon every transaction so 



MERCANTILE FORMS. V 

See R. Morris' Acct., page 105, and Form XX., p. 120. 
Interest Acct. to 30th June, 1867, with P. Duff.* 



Or. 




1M7. 

Jan. 
Feb 



Mar. 
Apr. 

May 

June 



1 

25 

28 

12 

20 

8 

18 
18 

ao 



For Bal. due you ^ acct. rendered 



your invoice goods ^ " Herald" 

Proceeds Ryan & Co.'s Bill on Barclay 

my dft. to Warden & Co., due "^ your Advice 

n. proceeds my Acct. Sales your goods'^ Herald' 

my i your joint Invoice ^ " Vixen 

my dft. favor of Walker 

your i my Acct. Sales ^ " Vixen" 

Ins. recovered upon Ship't 1§i ^^ Columbia"' 

Interest in Red at Dr. side 

Balance of Interest Acct. 44515.87 

Balance to debit in new acct. 



Pbincipal. 


When 
1 Dqi. 


Tnuc 






1866. 




2000 




Dec. 31 

1867. 


6. 


8888 


88 


Apr. 10 


2.20 


1995 




Feb. 25 


4.5 


• 4444 


44 


May 30 


1. 


9052 




2 


1.28 



RUT. 



60 



,jf 



4000 Apr. 10 2.20 

4444441 

4093 05 

5565 



May 18 1.12 
June 18 .12 




33 06' 
5676 59 



118 52 
4156 
22 22 
87 50 
53 33 

28 65 
11 13 



487.91 
454.85 

33.0s 





■ 
46? 




%' 


60192 





487' 91 



adjusted, that the balance will fall due in cash on the 30th day of June. Therefore, though 
this principal of $6500 is a debit, yet its interest from the 30th June to 30th August must 
be carried over to Morris' credit. When sums fall due in this manner, subsequent to the 
date of the account on both sides, extend the time and interest in red ) then, before you 
balance, carry over the balance of the " red interest" to the proper side. 

5. By looking attentively at the small marginal figures above, you will see how the balance 
of the interest is found and disposed of For the Day Book entry of it, see note 5, p. 96. 
It is put to the debit of our interest column, to close it, and at the same time to Morris' 
credit. Afterwards the account closes in all respects like his account in the Ledger. As 
there is no entry in any book to show by what process this balance of interest is found, a 
letter press copy of all such accounts should be preserved in a book kept for the purpose. 
We have left the exchanges to be computed at the end of the year, as is often done in busi- 



ness. 



6. In stating an account current of any kind, always use such words as will express, in the 
most concise and perspicuous terms, the origin of the transactions, without any regard to the 
technical expressions used for the same entries in your Ledger. 

Those who desire to become expert at making out accounts of this kind, must persevere 
in repeating the operation several times from their own books, without assistance from our 
forms. 

* In this and all the forms let the student use his own name, not ours. — See note, p. 76, 



114 



115 






Ill 



m 



m 



(Ponn II.) 



SET II.— DUFF'S BOOK-KEEPING. 

Messrs. JOHN TAYLOR & CO. 

IN AOOT. OUBBENT WITH P. DUrr, Dr. 



1807. 

Feb. 
Apr. 



12 
10 



IMT 

Apr. p. 5 



For our invoice of Teas ^ " Jersey" 
w Protecting your draft on Wood & Co. for . 
ft Paid Protest, &c., $4. My ^ "^ ct. commission $6 

'/ Accepting your draft at 10 days on Wood & Co. 

// Protest, $1. My ^ '^ ct. commission $3. 

n Your J Joint Shipment to London *^ '' Cambria" 



$1200 
10 



$600 
1 



Crs. 



>> 



$1600. 
4093.05 



5693 



1745 



For my i your Joint Shipment to London 
May 'is i If Your | my acct. sales of Joint Shipment "^ <' Vixen 

I I Balance due P. D. Due by equation 1st Jan. last.* 

i I E. E., New York, 30th June, 1867. 

Note. For clearness and brevity there is no better mode of stating a short account than this. The subtraction of the 

credits from the debits is made to show the balance. When the balance is against you, the form has to be a little varied, as 
yon see by Hay's account following.— See page 103. 



644 
1210 

604 
4980 



7488 



33 

05 

28 



(Ponn III.) 



WILLIAM HAY, Esq., 

IN AOOT. OUEEENT WITH P. DUPP, Dr. 



•am. 
Mar. 



Apr. 
May 



2 

16 

15 // 
4. // 



For your half Walker's Invoice of Eice Bot. on joint acct. 
// Carter's protested note endorsed by you 

Your half joint shipment to Liverpool "^ " Erie" 



Your half Finlay & Co.'s Invoice of Pork Bot. on joint acct. 
June |30 \ f Balance carried to your credit in new acct. 



1887. 

Feb. 
Mar. 



Apr. 
June 



12 
1 

5 

5 

15 

1 

28 



Crs. 



30 



For your Invoice of Table Linen ...... 

Cash on acct. of purchases on joint speculation . 
My half your Invoice of Wines sent me for sale on joint acct. 
Your half my acct. sales of goods sold on joint acct. . 
Your Invoice of Pork ....... 

Amt. advanced by you in joint shipment "^ " Erie" . 
Your half net proceeds of joint shipment to Boston . 
Your half returns of joint shipment to Liverpool 
Your i dividend net profits of Ship Roscoe 



ji 



If 



By Balance due Mr. Hay brought down 
E. E., New York, 30th June, 1867. 



12 



L6012 



L0813 



12 
12 



12 



* This is ascertained by what we call a Compound Equation. As we do not see the rule in any of our arithmetics, we sub- 
join it. 

Rule.— Find the equated time of each side of the account by a simple Equation— note 2, p. 68. Then multiply the lesser 
side by the time that intervenes between these two equations, and divide the product by the balance of the account; the quo- 
tient is the time to count back or forward. If the balance is on the side of the earliest equation, count back from that date ; 
but if it be on the side of the latest equation, count forward from that date. 

Let us illustrate the rule by Taylor & Co.'s account as above stated — refer to the Day-Book for the time when each amount 
falls due. We find by simple equation that the Dr. side falls due April 6th, and the Cr. side May 5th. The time between these 
equations is 29 days : and the lesser side of the account is $5693. X 29 days = 165.098 -h $1745 (the balance) = 95 days. Now 
the balance being on the side of the earliest equation— April 6th, we must count back from that date 95 days, which brings us 
to the 1st January, tlu> dav upon which this balance is due. 

116 



MERCANTILE FORMS. * 

Form IV.— See Note 1, p. 82. 
SALES OP MERCHANDISE sold by order and for account of E. Morris, Esq., London. 



1867. 

Feb. 



5 

9 



Mar. 



1867. 

Feb. 



Mar. 



18 
12 



Sold for Cash to J. Lorillard — 

1 pipe, 120 galls., Port Wine .... 
Sold to William Park at 4 months — 

5 pipes, 600 galls., Port Wine .... 
Sold for Cash to W. Bryant & Co. — 

3 pipes, 360 galls.. Port Wine, 
Sold R. Banks for Cash — 

2 pipes, 240 galls., Port Wine .... 
For net proceeds of 10 pipes Port Wine sold in New Or- 
leans, Rec'd Barclay & Co.'s acceptance at 60 days 
from date for ...... , 

Taken to my acct. the remaining 9 pipes, 1080 galls., at 
market price @ 60 days . . . @ ^3. 



12 

20 

12 



@ 83. 



u 



ft 



3.50 
3. 



3.50 



360 

2100 



1080 



840 



4500. 
3240. 



CHARGES. 



// 
// 
tf 
II 

II 



Paid Duties 

Freight and Primage . 

For Grauging 

Cartage and Cooperage 

Cartage, Freight, and Insurance of 10 pipes shipped 
to New Orleans .... 

R. Banks, for overgauged Wine . 
Storage ........ 

Advertising ....... 

Commission and Guarantee 5 per cent, on $12120 

Net proceeds due in Cash 2d May 

E. E. New York, 
March 12, 1867. 



% 


2222.22 


167.78 


1.50 


3.50 


28. 


21. 


3.50 


14.50 


606. 



i 



p. DUFP. 



The Account Sales is always drawn from the Commission Sales I>ook; or, if that book i» 
not kept, from the Day Book. No entry whatever ought to appear in the account but 
what relates to the sales; and nothing should appear in the charges but the expenses 
attending the Sales. — See Note 3, p. 68. 

The rule for equating the time? is given on page 68. Or the student may, if he prefers 
them, work by those given in his Arithmetic; but I would recommend him to prac- 
tise upon the one he intends to use until he can operate with dexterity and accuracy. 

When you make out an Account Sales, with part of the consignment unsold, give a conciPe 
statement of the goods unsold at the foot of the account. — See Note 4, p. 68. 



7740 



12120 



3068 



9052 



117 





I^vfi 



• SET II.— DUFF'S BOOK-KEEPING. 

Form V.— See Note 4, p. 90. 

ACCOUNT SALES of 40 Bales Brussels Carpeting, sold for the joint acconnt of P. Duff of 
New York, R. Morris of London, and J. Taylor & Co. of New Orleans, each one-third. 



18«7. 

May 



1867. 

Apr. 



May 



13 
18 



20 



18 



Sold to Warden & Bell— 

120 pieces, 4250 yds @ 62. 

Net proceeds of 55 pieces sold at Austin & Co.^s Auction 

Taken to my own account the remaining 55 pieces, 1907 yds. @ $2. 



CHARGES. 



Paid Duties to the Custom-house 
// Freight and Primage per " Vixen" . 
// Insurance against fire ..... 
ft Cartage and labor . . . i . 

Storage $3, Advertising $10 

Commission 2^ per cent, on $15874 

Net proceeds 

Of which my i is 

w K. Morris' do. at his credit due this day 
» J. Taylor & Co. do. do. 

E. E. New York, ) , 

May 18, 1867. J . ■' 



3000. 

150. 

33. 

2. 

13. 

396.85 



4093.05 

. 4093.05 

4093.05 

$12279.15 

Duff. 



8500 
3560 
3814 



15874 



3594 



12279 



85 
15 



Form VI. — A Foreign Bill of Exchange. — See Note 6, p. 76. 
Exchange for £1000 Sterling. New York, February 25, 1867. 

Sixty days after sight of this our first Exchange (second 
and third not piiid), pay to the order of Peter Duff One Thousand Pounds Sterling, 
for value receiyed, and place the same to account as per advice from 
To Egbert Morris, Esq., | Yours, respectfully, 

Merchant, London. j Baker & Fox. 

Form VII.— An Inland ^.ill, on Draft.— See Note 2, p. 70. 
$1000.-^% 1 ^ New Orleans, December 10, 1866. 

Ten days afWw^Jit, pay to the order of Messrs. Ryan & Dale One Thousand 
Dollars,' value recei^f^ foyjiccount of, 

To Mr. PETER,Dirf% ^ * Yours, respectfully, 

Merchant, ^^ York. J John Taylor & Co. 

Form VIII. — An Order.— See Jan. 24, p. 72. 
$500.-jft5<>j New York, January 24, 1867. 

Pay to the order of Messrs. Warden & Bell Five Hundred Dollars, for 
value received, for Yours, respectfully, 

To James Walker, Esq., ") p. Duff. 

Merchant, New Yoi-k. j 

Form IX. — An Order for Merchandise. — See Note 3, p. 70. 

I108.T% New York, January 15, 1867. 

Pay to the order of Mr. Henry Pryor One Hundred and Eight Dollars, 
in Merchandise out of your store, for account of 
To Mr. Peter Duff, ) James Carter. 

Merchant, New York, j 

118 



MEECANTILE FOEMS. 

Form X. — A Promissory Note. — See Note 4, p. 72. 

S1515./g%. New York, January 30, 1867. 

Sixty days after date, for value received, I promise to pay to the order of 
Mr. Peter Duff Fifteen hundred and fifteen dollars, y^u- 

William Hay. 

Extensive houses now generally arrange such transactions with an acceptance. The fol- 
lowing is the form : 

Form XI. — An Acceptance for the above transaction. 

$1515./o%. New York, January 30, 1867. 

Sixty day^ a^r date, for value received, please pay to my order Fifteen 
hundred and fifteen Dcii^s, jYo- 
To William Hay, Esqufl : p. Duff. 

Merchant, New Yor^j ^ 
With the left side up, Hay Writes across the face, in red ink, " Accepted." 

Wm. Hay. 
This form will be found convenient for making payable at a particular place — say Phila- 
delphia. The drawer then says " pay to my order in Philadelphia." The acceptor must 
name the place where he will have funds to take it up — thus, he writes across the face. 
*' At the Girard Bank." Wm. Hay. 

To negotiate this acceptance, the drawer has to endorse it himself, it being payable to his 
own order. 



Form XII. — ^A Joint Promissory Note. 
^SOO./qO^. New York, January 30, 1867. 

On demand, for value received, we or either of us, promise to pay to the 
order of Mr. Peter Duff, Five hundred dollars. Wm. Hay, 

James Carter. 

Form XIII. — A Receipt in full. — Note 4, p. 70. 
New York, January 16, 1867. Received from James Carter Five hundred and 
sixty dollars in full. 

$560.^Oo'u- P. Duff. 

Form XIV. — A Receipt for money on account. — Note 2, p. 84. 
$800. Received from Peter Duff, Eight hundred dollars, on account. 
New York, March 31, 1867. R. Lenox. 

Form XV. — A Receipt for an endorsement upon a note. — Feb. 12, p. 74. 
$2000.y%<5j. Received from Mr. Thomas Edwards, Two thousand dollars, which is 
endorsed upon his note. 
New York, February 12, 1867. \ P. Duff. 

Form XVI. — A Receipt for a promissory note. — January 18, p. 72. 
$600. Received from Mr. James Carter, his note at twenty days for Six hundred 
dollars, which, when paid, will be in full to date. 
New York, January 18, 1867. P. Duff 



$2100./^o^. 



Form XVII.— An Endorsed Note.— Feb. 9, p. 74. 

New York, February 9, 1867. 
Four months after date, for value received, I promise to pay to the order 
of Messrs. Warden & Bell, Two thousand one hundred dollars. 

Wm. Park. 



Endorsed notes are always drawn payable to the endorser, not to the holder. 

119 



■I 




SET II.— MERCANTILE FORMS. 

Form XVIII. — A Letter of Introduction. 

New York, May 30, 1867. 
Dear Sir, 

I have the pleasure of introducing to you the bearer, my much esteemed 
friend, William Hay, Esq., Merchant of this city. While in London he wishes to confer 
with you upon some business, the nature of which he will himself explain to you. 
Kecommending Mr. Hay to your usual kind attention, I remain, 

Dear Sir, 
To KoBERT Morris, Esq., ) Yours, Kespectfully, 



Merchant, London. 



P. Duff. 



Form XIX. — ^A Letter of Credit. 

New Orleans, March 30, 1867. 
Dear Sir, 

If the bearer, Mr. James Draper, desires to make any purchases of merchandise 
of you on credit, you may consider us responsible to you for the payment of the same, to any 
amount not exceeding One thousand dollars. In the event of his failing to make his pay- 
ments according to agreement, we require you to give us timely notice of the same. We are, 

Dear Sir, 
To Mr. Peter Duff, ] Yours, Kespectfully, 



Merchant, New York. 



} 



John Taylor & Co. 



Form XX. — ^A Letter with an Account. — See Form I., p. 115. 

New York, June 30, 1867. 
Dear Sir, 

Inclosed I hand you your account current balanced by $5676.59, in my favor 
due this day ; to which, if you find it correct, please make your books conform. I am with- 
out any of your favors to reply to, but remain. 

Dear Sir, 
To II. Morris, Esq., \ Yours, Respectfully, 

Merchant, London. J P. Duff. 



Form XXI. — A Letter of Advice. — See Note 5, p. 84, and Note 1, p. 86. 

New York, April, 10, 1867. 
Gentlemen, 

I have to inform you that I have this day paid your bill of $1200, on Sidney 
Wood & Co., which was protested for non-payment. Your bill of $600 on the same parties, 
has also made its appearance, and the drawees having apprised rae of their inability to give 
protection to your signature, I have accepted for your honor and will take care of it at maturity. 
Bill paid $1200. Expenses $4. Commission ^ per ct., $6. Due this day $1210. 
Bill accepted supra protest $600. Protest $1. Commission $3. Due 23d inst., $604 
which amounts please place to credit of, 

Gentlemen, 
To Messrs. John Taylor & Co., | Yours, Kespectfully, 

Merchants, New Orleans. j P. Duff 



Form XXII. — A Letter of Advice. — See Note 4, p. 76. 

London, December 24, 186(5. 
Dear Sir, 

In my respects of the 18th instant, I inclosed you an invoice and bill of lading 
of a consignment of 30 Pipes Port Wine shipped per " Herald," which sailed on the 19th. 
I have now to advise you that I have this day valued upon you at 10 days on account of 
the same for $2500 in favor of Kobert Banks, which please honor for account of 
To Mr. P. Duff, ) Yours, Respectfully, 

Merchant, New York. J R. Morris. 

120 



DUFFS BOOK-KEEPING. 



PAKT II. 



121 



, 1 



1 

': T ■ 

i' 



1' 

i! 






il 1, 
ij 

il 

1 1 
I 

I i 

i 



.! '1 



DUFFS BOOK-KEEPING, 



PART IL 



EXEMPLIFYINa PARTNERSHIP BOOKS 

Upon two different methods, for greatly abbreviating and simplifying tbe usual process of 
Double Entry Book-keeping. Adapted to the most limited retail, or to the most ex- 
tended wholesale business ; with the whole of the auxiliaries, with part, or without any of 
them. Illustrating a new method of 

PROVING THE LEDGER:* 

By means of which, no entry once made upon the Day Book or any op the 
Auxiliaries can afterwards be omitted at any stage of its passage to the 
Ledger without certain detection. Embracing also an exemplification of the 

PRIVATE LEDGER, 

By means of which the results of the business can only be known to the partners. 

Practical directions for transferring the contents of the old Ledger to the new 
one, illustrating the formation of a 

NEW FIRM BY THE INTRODUCTION OF A NEW PARTNER. 

Also, particular directions for conducting partnership books during settlement, after 
dissolution. 

MAKING OUT PARTNERSHIP BALANCE SHEETS. 



p 



Rates op Commission and Storage established by the Chambers of Commerce of the 
cities of 

NEW YORK and PHILADELPHIA, with various additional matters of important in- 
formation for men of business. 

* We do not present the six-columned Day Book or Journal as original. Our method of proving the Books 
is applicable to any form of Day Book or Journal. 

123 



V- 



ii 



I I 



SET I.— PART II.— PARTNERSHIP BOOKS. 



PRELIMINARY REMARKS. 

1. We now propose to supply what other authors have omitted — an arrangement of the 
Double Entry principle, practically adapted to retail business, — a method divested of the 
cumbrous machinery of Auxiliaries, the dilatory intervention of the Journal, and, above all, 
the voluminous masses of writing created by the common mode of keeping and posting the 
Cash and Merchandise accounts. 

2. Though the following method is conducted strictly under the first fundamental rule of 
Double Entry — equal debits and credits — it will be readily seen that a great saving of books, 
writing, posting and checking is effected, with increased security against error, with the full 
benefit of all the information obtained by the ordinary Double Entry process, and with the 
convenience of having your personal accounts daily posted up and ready for settlement at a 
minute's notice. Let us state its advantages over the common process more distinctly. 

Ist. — Dispensing with all books but the Day Rook and Ledger. 

2d. — Writing in the cash and merchandise accounts in the Ledger reduced to about one 

LINE FOR ONE HUNDRED. 

3d. — Checking the cash and merchandise posting, reduced in the same proportion. 

4th. — A yearly saving of forty or fifty folios of the Ledger. 

5th. — Increased security against error, as no entry once entered upon the Day Book can 

be omitted in posting without detection. — See Note 1, p. 135. 
6th. — Daily posting of the personal accounts, thereby having them always ready for 

settlement. 

3. These are considerations which entitle this method to the particular attention of all 
retailers. And though, in ordinary retail business, the Day Book and Ledger are the only 
books ab.solutely required, we shall show hereafter, that as the business increases this 
arrangement will not be disturbed by the introduction of any one, or all the auxiliaries in 
use. It is therefore not only adapted to the most minute retail business, but to the most 
extensive operations of commerce. 

4. No person should attempt to learn the science by commencing here. If he is unac- 
quainted with its principles, he must first acquire them by the course of instruction in the 
preceding part of this work. Afterwards the form of these books, although somewhat com- 
plicated in appearance, can be understood and practised with ease. Indeed, after the Day 
Book Entry is once correctly made, the subsequent steps partake much of the simplicity of 
Single Entry. But, for obvious reasons, no one should attempt to apply it to business until 
he has gone through a course of exercises. 

5. The following Day Book is ruled with six columns; the debits, as usual, always 
occupying the left, and the credits those on the right. The column next the writing on the 
left and that on the right, as you perceive by the post marks, are the only ones that are 
posted in detail. The cash and merchandise amounts, both debits and credits, are forwarded 
from page to page until the 30th March — p. 128. From there they are posted in one sum, 
afiixing to it the post mark as usual. 

In making the Day Book Entry, care must be taken to extend all cash and merchan- 
dise entries into their own columns. And those who are very expert in addition, and who 
desire to keep their work free from erasures, should foot and prove the addition first upon 
a waste sheet of paper, taking care afterwards to keep each set of figures under its own 
column. 

6. In making an entry, the same form of expression is used as upon a common Journal. 
In entering an invoice of sale, the particulars are first short-extended, like Evans's or But- 
ler's entries on the next page. 

7. Observe, the Cash and Merchandise accounts can be posted monthly or yearly, as may 
suit your convenience, recollecting that every time these accounts are posted, it makes a 
period in the amounts brought forward on the Day Book, and the new period commences 
with the heads of the columns empty. — See Note 1, p. 128. 

124 



Diis. 



NEW YORK, January 2, 1867. 



Cbh. 



Mdse. 



3380 



Cash. 

mo 



3380 

Paid 
Bal. 



954 



4954' 



1 

1200 

400 

4 



271 



337 25 



50 



50 



50 



25 



\U4 

2 



10 



2247 
4954 
3380 



2 



1700 50 10581 
3253 50 



Cash, Dr. to Sundries, 
To P. Duff, received on account of capital, 
" W. Gordon, 

If 

Mdse., Dr. to Sundries, 

To T. P. Cope & Sons, for Invoice, 

" Wm. Hay, for Invoice, 

" Cash, paid freight, 

== 5. = 

Sundries To Cash, 

Expense account paid laborers. 

T. P. Cope & Sons, remitted them. 

Wm. Hay, remitted him. 

Exchange account, paid Premium on drafts. 

„ __ 

Robert Martin (270 Bowery), To Mdse., 

1 pair fine Boots, ..... $6. 
Repairing two pair do. . . . .1. 
1 pair Ladies' Boots .... 2.50 

f, ; 

James Carter, To Mdse., 

1 pair Boys' Shoes, .... $1.75 

Footing 1 pair Boots, .... 2.75 

If 

Robert Evans (Buffalo), To Mdse., 

12 pair Boots, at $8. $96. 

24 " " Light, " 6. 144. 

24 " Boys' Shoes, " 1.25 30. 

Packing case and cartage, 1.25 

====== 10. "~^ 

P. Duff, To Cash on account, 

II 

James Moore (Pine St.), To Mdse., 1 pr. Boots,* 

// 

Robert Butler (Albany), To Mdse., 

48 pair Ladies' Boots, at $2. . . $96. 

60 " Men's do, " 3. . . 180. 

60 " Boy's do. " 1. . . 60. 

Box and cartage, . . . . 1.25 

,; ZZZZZ 

Cftsh To Mdse. for sales to date, 
==z= 20. = 

W. Gordon, To Cash on account, 

// 

J. Carter, To Mdse., for 2 pair Shoes, . , $2. 

Amounts forwarded, 

Cash, 

Merchandise 

Proof 



OBsh. 



1. Pencil the cash paid under the amount received, and 
you can see the balance as often as you desire. — 
See Note 1, p. 128. 

* Entries that are collected before posting, are marked 
80 in the folio column, and the pen is run lightly through 
the figures on both sides. Omit these figures in the ad- 
dition, and dispose of the cash as if received for a ready 
money sale. 



2500 
1500 



2500 
800 



80 

1 I 

3605 50 



7300 
1700 50 
1580 50 



n 



9m 



171 



337 25 



4M 



954 



4 

1700 50 1580,50 



.10581 



125 






i 



i 



i 



I I 






DBS. 



1 January 20, 1867. 



Cbs. 



MdM. 



3380 



" Osah. 
4954 



2247 



94 



IM 



2 



Bro't forward, . 



R. Martin (270 Bowery), To Mdse., rep*g Boots, 
31. .^ 



I I 



6 , I i 1 I P. Duffy To Mdse. for 1 pr. fine Boots, 



2 50 1 W. Gordon, To Mdse. for 1 pr. Ladies' Boots, 

I il U - Feb. 1. == 



' Mdse. To Sundries, 
To Cash paid Journeymen to date, 
" J. Day, foreman's wages to date, 

n 



45 



3 James Day, To Sundries, 
j To Cash, paid him on account, 
i " Mdse., a Black Dress Coat, 



3 20 3 ' Expense acet. to Cash pd. for Coal $3, post. 20, 



n 



Sundries To Cash, 
111 T. P. Cope k, Sons, remitted draft. 
200 1 Wm. Hay, do. do. 

6 50 ,3 Exchange acct., paid Prem. on the above drafts. 

I — 10. - 



7800 



50 



CMdi. 



1700 60 



Mdse. 



24 



20 



1580150 
50 
6 

2 50 



16 
430 



12 
35 



I Sundries To Mdse., 
3 J. Day, pd. his order to W. Price. 
2 R. Martin, do. to James Reed. 



Mdse., Dr. to Cash pd. Journeymen, 
— 16. 



Mdse. To Cash, pd. Davis's Auction Lill, 
fi 



95 



45 



3 : J. Day, Dr. to R. Martin. 
! For our order on R. Martin. 



// — 



60 



200 



A. BeU To Mdse., for 1 full Circle Cloak, 

20. ^== 

Mdse., Dr. to Edward Pryor, 
For his Invoice of Trimmings, 

n 

Cash To E. Pryor, rec'd in loan, 

1 w 



! \ 



2 50 2 A. Bell To Mdse., repaired Coat and Vest, 

// ■ 

16 3 E. Pryor To Mdse., 2 pr. Blk Cassim. Pants at $8. 



3 



8 



3146 20 
5154 • 
4160' 

12460 20 



• Amounts forwarded. 
Cash, . . . 
Merchandise . 

Proof 



1. After the books are open we discontinue the useless, 

though universal, practice of continually repeating 
the place of business at the head of every page. 

2. Mdse. is Dr. for the expense of manufacturing, al- 

though it is more proper to carry rents, clerks' 
wages, and the expense of selling it, to the Ex- 
pense account. 
8. To save writing we may, hereafter, set the footings of 
the Cash and Merchandise columns, at once into 
the proof column. 



3 20 



706 



50 



16 

630 



25 



60 



200 



7635 
3100 20 
1725 1 

12460 20 



126 



25 



47 



45 



2 
16 



50 



Dks. 



Mdse. 



4160 
80 
50 



Gash. 



5154 



534 



250 



300 



650 



February 28, 1867. 



Cbs. 



3146 '20 



200 



48 
36 



45 




5 

43 



800 



40 



48, 



Bro't forward, 

j Mdse. To Cash, pd. Journeymen, 

\ — If 

Mdse. To J. Day, wages to date as foreman, 

■ == Mar. 1. - 





1 

7635 


1 I 
Cash. 


3100 


20 


1 


I 


36 




3 

i 


50 

1 







MdM. 
1725! 



3 1 E. Pryor To Cash, pd. loan of 20th ult. 

^ ^ 

I Sundries To Mdse., 
1 ! P. Duflf, for 6 yds Black Cloth, at $8. 
1 I W. Gordon, 16 yds. Fig'd Satin, 1.50 24. 

1 doz. Black Cravats, 12» 

— 10. — 



200 



Cash To R. Evans, rec'd by mail, 

— - " — ft 

Sundries To Mdse., 

2 R. Evans, 1 ps., 36 yds., Satin, 

3 j E. Pryor, pd. his order to A. Wood. 

_ -^ ff 



at $1.25 



Sundries To Mdse., 
A. Bell, 1 fine Hat. 

Samuel Gaynor, 4 yds. B. Blk. Cloth, at $10. 40. 
1 " Cassimere, 3^ 

^..^ 20. "- 



250 



I i « T. P. Cope & Sons To Cash, 
1 Pd. their draft at sight for Bal. of account. 



// 

Cash, Dr. To Robert Butler, rec'd per mail, 

ff 



806 



I 



3 Edward Pryor To Andrew Bell, 
i for our order on the latter. 



3 I * S. Gaynor To Mdse., paid his order 
to H. Wallace, 

— ' ■■ 25. = 



4417 20 I 

6354 

4780 

15551 20 



Mdse. To Sundries, 

To T. P. Cope & Sons, for Invoice of Cloths, 
" Cash, paid freight on same, 

■ Cash To Mdse., 
For Cash sales to date. 

Amounts forwarded, .... 

Cash, 

Merchandise 



Proof 



1. We wish our readers to observe, that though want of 

room compels us generally to write only the initials 
of the Christian names of persons, in business we 
direct these to be written in full; confusion and 
trouble are frequently occasioned by the contrary 
practice. Legal titles should also always be chosen : 
"Commercial Advertiser" or "Evening Express" 
are not the proper titles for accounts in our books. 

2. Recollect Note 1, Carter's acct., p. 105. 

3. Recollect Rule IX., p. 40. 



2 



300 
40 



504 



30 



8779 
4166 20 
2606 

15551 20 



127 



84 



51 



4S 



48 



650 




Drs. 



March 30, 1867. 



Crs. 



Hdss. 1 

1 


OMh. 








4780 

1 


6354 




4417 


20 












60 




3 


m 




37 


25 


45 
90 

20 




2 
3 

4 










4632 
6391 
4830 


20 
25 

45 


1 
1 




15853 



Bro't forward, 

;/ 

Expenses To Cash, paid store rent to date, 

// 

Merchandise To James Day, 

for foreman's wages to date. 

= 31. == 

James Carter, Dr. to Cash on account, 

ff 

Expense account To James Carter, 

for 3 months' salary to dates, 

ff — 

Profit A, Loss To Cash, for a counterfeit $20 note, 

ff 

Cash To Robert Butler, 

Received in full per mail. 

Total amount to date 

Cash . . 

Merchandise 

Proof 



Merchandise on hand per Inventory at date is 
$3217.50.— See Invoice Book, p. 137. 



m 






Cast 


1. 


Hdae 




8779 




4166 20 


2606 








60 






3 


50 




45 




- 


2 


90 




20 






2 


37 


25 








1 
1 


8956 
4291 
2606 

16853 


25 
20 









1. To find the balance of cash in hand, after a period of the Day Book is posted, you 
must add, with your pencil, the balance of the posted part of the cash account on the 
Ledger to the footing of the debit column of that account on this book; then deduct the 
amount of the credit column, and you have the balance in hand, as in note 1, p. 23. 

2. Care must be taken to extend the cash and merchandise entries into their own 
columns. Each entry should be carefully examined before adding up. 

3. This form of Day Book will be found applicable to almost any kind of business, the 
Cash columns being always required as they are here. Those which we use for Merchan- 
dise "may be used for any title that will represent the person's principal business; the Medi- 
cal and Legal professions can use it for their Practice; Manufacturers would use it for their 
Factory, Hotels would use it for their Expenses, &c. 

4. Every business has an account from which its principal income is derived. This and 
the cash 'account must always create a great number of entries, and any mode of posting 
these entries in accumulated amounts, must materially diminish the amount of writing in 
the Ledger. No method has yet been tried which accomplishes this object with so much 
simplicity and accuracy as those explained in this and the following set. I am aware that 
some do it, or attempt to do it, by the page, by the week, and by the month, by means of 
what is called a " collecting sheet.' But, on account of its great impediment to checking, 
and still greater difficulty in detecting errors, this mode of posting can never be recom 
mended. 

128 



PARTNERSHIP BOOKS. 

THE LEDGER. 



INTRODUCTORY REMARKS. 

1. The following Ledger is opened, conducted, and closed upon the same principles as 
those already explained. I have made one or two slight deviations from the common course, 
which the book-keeper may or may not adopt, as he pleases. In order to conflict as little as 
possible with the established process of teaching, I retained the prepositions To and By in 
the Double Entry Ledgers in the first part of this work ; but as I consider them of no more 
use than the old practice of filling up the cent column with unmeaning ciphers, I have 
dropped them in both Ledgers in this part of the work. 

2. In the next place, I have in some instances briefly detailed the Day-Book entries on the 
Ledger. I am aware that some ridicule all attempts at entering details of any kind of busi- 
ness upon the Ledger, and many persons are impressed with the idea, that it is contrary to 
the rules of accounts to do so. But retailers will be perfectly safe in giving what I suggest 
a trial. It is as easy to write 1 ft) tea, a hat, a coat, or a pair of boots, at a man's account, as 
merchandise. The book-keeper's experience will soon enable him to judge how far it will 
be for his convenience to carry out this method of posting, recollecting that it is only recom- 
mended to retailers. 

3. While teaching the principles of the science, dividing the Profit & Loss account into 
Expense, Exchange, Interest, &c., renders the subject more complex and tends to retard 
rather than facilitate the student's progress. For this reason none of these accounts were 
introduced in any of the preceding sets : but we have given an exemplification of each in 
this and the following set, with the necessary directions for closing. We may also observe, 
that these accounts ought always to be kept in every business that creates any considerable 
number of entries for them. Note 4, p. 24. 

4. I have opened the Ledger with a cash capital of 84000, placing $2500 at the credit 
of Dufl", and $1500 at the credit of Gordon. The business closes with a gain, which is divided 
and carried to the credit of each partner in proportion to his capital. 

5. It may be proper to observe here, that the rules of accounts have nothing to do with 
regulating the division of profits or losses ; that is altogether a matter of private agreement. 
In our next Ledger will be found an illustration of the equal division of profits ; and on 
page 181, various modes of adjusting the difference of capital by interest : our students shall 
have an ample variety of illustrations. 

6. After closing this Ledger we have transferred the contents to a new set. This was 
done for the purpose of giving another practical elucidation of that process, and also to get 
an opportunity of exemplifying the application of our method of proving the books to an 
entire set. We think it proper to give this explanation here, because many persons imagine 
that every new partner who is introduced into a firm, makes it necessary to have a new set 
of books. This is not necessary, provided the old books have been regularly kept. It is, 
however, generally necessary to take an inventory of the property on hand and to make out 
a Balance sheet. The new partner's name is then introduced, with a credit for whatever he 
brings in, and a debit for what the firm may assume for him. The old partners' accounts 
are closed and their respective shares in the business at that period brought down. 

7. A suspended list ought always to be opened upon these occasions for such debts as the 
old partners have any doubt of collecting. — See Suspended List, p. 134. — Of course they 
must make good to the new firm all old debts for which they credit themselves : and if many 
of these debts should afterwards prove wholly or partially irrecoverable, the adjustment oV 
the matter has always to take place after the lapse of considerable time, — perhaps several 
years : it then becomes an awkward and very troublesome operation. In all such cases it is 
better, at the commencement, for the old partners to carry no debts to their credit but such as 
they are absolutely certain of collecting. Leave all the others behind upon the suspended list, 
and make new dividends of them, between themselves, as collected. — See Duff" and Gordon's 
Account, page 169. 

I 129 



I 



il ' . 




r I 



#' 



ON CLOSING A PARTNERSHIP LEDGER. 

1. The principles of opening, closing, transferring, and re-opening books have been 
already so carefully explained in the first part of this work, that it is to be hoped nothing 
need now be repeated that has been there explained. 

2. The only new features in the process now before us are the dividends of gain or loss, 
the partners' accounts, and the suspended list ; the management of all the other accounts is 
in every respect the same as in individual business. 

3. The manner of finding the net gain or loss, is the same as we have previously explained : 
the division of it, and the operation of closing the account, can be best explained at the 
account itself — p. 134. 

4. In closing the personal accounts, omit the partners' accounts, and leave them open 
until the last : they, like the stock account in individual business, being always affected, as 
you perceive by referring to them, by the closing entries of Profit & Loss, and must, there- 
fore, be left open to receive their entries of gain or loss when that account is closed, which 
cannot be done until it receives all its transfers from the Other accounts. Therefore, the 
partners' accounts, Profit & Loss and Balance, must be remaining open after all others 
are closed : these are then closed — ^first. Profit & Loss into the partners' accounts, then the 
partners' into Balance : then, if all be correct. Balance will be exactly closed by these last 
transfers from the partners' accounts. The accountant should always first make the closing 
entries of these last accounts in pencil, to be certain that the Balance will close by the last 
entries. For although this trial may have come out all correct, errors or omissions may have 
got into the work that he has done since, which will compel him to scratch and disfigure 
these, the most conspicuous accounts in his Ledger. 

5. It may \>e proper to remark, that though both our partners' accounts here close To 
Balance, when a partner draws out more than his share of the gain and the amount he has 
paid in, his acct. closes -By Balance. When all the partners' accounts close in this way, then 
the firm is insolvent. In short, after partners have received their transfer from Profit & 
Loss, their accounts then close in every respect like those of other persons. — See Notes, 
Balance account, p. 35.* 

6. We have already alluded to the use of the Suspended List, and have now only to state, 
that it is opened for the purpose of exhibiting a list of all such accounts as we think we 
cannot safely make a dividend upon : the partners must themselves mark these for the book- 
keeper. The amount of such accounts must be known in order to enter the Profit & Loss 
account, for the Ledger will not, of course, balance without disposing of these accounts 
either in Profit & Loss or Balance : besides, the practical merchant or mechanic will find 
this companion to the Balance sheet a useful monitor every time it is made out. 

7. The book-keeper can often materially shorten the balance sheet by sending round, before 
making it out, and paying off" all trifling balances against him, and, at the same time, by col- 
lecting all balances of this kind. From inattention to what I here suggest, I have seen 
balance sheets made out with fifty or sixty accounts of trifling sums upon them, nearly all 
of which would have been paid if called for. 



Note. — ^We think it unnecessary to annex an index to this Ledger : we give one to the next — page 164. 

* If a partner is taken into the firm without capital, his account will open without a credit, and will remain so until the 
Imginess places a profit at his credit. 



130 



fir. 



R 



DUFF. 



Cr. 



1867. 

Jan. 10 Cash, 

31 1 pr. Fine Boots, 
Mar. 1 6 yds. Blk. Cloth® $8. 



Balance, 



59. 



f. 









1867. 


1 1 


1 


5 




Jan. ' 2' 


2 


6 




Mar. 31 


3 


48; , 


1 ' ' 


4 


2884 


47 






2943 


47 





Cash, 



2943.47 p 
59. ^' 



1 

4 



2500 
443 47 



,- 188£47 



2943 47 



-1- 



1. Credit each partner for what he pays in, and for his share of th^net gain, and debit him for what he draws out and for his 

share of the net loss. Close To or By Balance. — Notes 4 and 5, p. 130. 
•2. When a partner leaves home, taking money with him to lay out for the business, he should leave a memorandum of th« 

amount with the cashier, who can count this paper as money until the partner sends him a statement of the outlay • 

then the final entry is made. The practice of encumbering a partner's account with such transactions can never b« 

recommended. 



W. GORDON. 


1867. 

Jan. 
Mar. 


I 

20 

31 

2 

31 


1 
Cash, 

1 pr. Ladies' Boots, 
16yds. F. Satin® 1.50 
1 doz. Cravats, 48.50 
Balance^ f. 


1 

2 
3 

4 

1 


10 
250 
24 
12 

1717 58 


r 1867. 

Jan. 
Mar. 


2! Cash, 

31 Profit & Loss, ^'ffiJS f. 


1 1500 
4 266 08 

i 
I 
1 

1766 08 




1766 08^ 


1 


1 

i 








|- III 


) 




T. P. (PI 


^ladelphia 

\' 1867. 

1 Jan. 


COPE & SONS. 


1867. ' 

Jan. 5 
Feb. 5 
Mar. 20 


Cash, 
// 


1 
2 
3 

4 


1200 

500 

800 


2 


Mdse. "^ Invoice, 


1 2500 

i '^' 1 

2500 
3 504* 






2500 

504 








31 


Balance f. 


Mar. 


25 


Mdse. "^ Invoice, 


WILLIAM 




HAY. 


iscr. 
Jan. 

Feb. 
Mar. 


5 
5 

31 


Cash, 

// 600 

Balance, * f. 


< . 1 

1 400 : 

2 200 

4! 200 


' 1867. 

Jan. 2 


Mdse., »5: 


1 800 

i 






800 






800 








■^ ■— mz 


CASH ACCOUNT. 


1867. 

Mar. 


31 


Sundries to date, SiS 

2100.05 


1 
4 


! 

6391 


25 

25 


1867. 

Mar. 

1 


31 


1 

Sundries to date, 4 4291 20 
Balance, . J 100 05 






6391 


1 


639125 








1 






MERCHANDISE 


ACCOUNT. 


1867. 1 

Mar. 


31 


Sundries to date, 4 4830 1 
Profit & Loss, f. 4 993 50 1 

Ii — - ■ --;1 


1867. ' ; 

Mar. 31 Sundries to date, 

// lrilMn"<' 5S23-56 


4 2606 

1 








5823 50 






ML50 


5823 50 








■ -^^ 


Il 







131 



ii! 



ii 



I I ' 



f; i' 




'' 




Dr. 



ROBERT 



(i«70 Bowery; 



MARTII^. 



ir. 



1887. I I 

Jan. 5l 1 pr. Fine Boots, 
Repairing 2 pr. do. 
1 pr. Ladies' Boots, 
20 Repairing Boots, 

Feb. 10 Pd. order to J. Reed t 



May 23> Bal. bro't down, 



Note 7, p. 129, and 6, p. 130. 
I. The above account remained closed until Martin paid the 
amouDt to the new firm. It was then re-opened to re- 
cord the payment : this must always be done in such 

case:s. 




1807. 

Feb. 

Mar- 



May 



15 

31 



Our order to J. Day, 

Suapeuded J^ist, f. 



23, Pd. Duff, Gordon & Co. 



2 

4 




2. If the business of the new firm had re-opened in these 
books, it would then have been necessary to re-open the 
suspended accounts with a Day Book Entry, making 
them Dr. To Duff & Gordon : then credit them for the 
payment. 



JAMES 



(Clerk) 



CARTER. 



1867. 



Jan. ' 5; Shoes 1.75, Boots foot- 
ed 2.75, 
20 2 pr. Pumps, @ $2, 
Mar. 31 Cash, 53.W 

vlalance, f. 







1 


; 1887. 

;Mar. 


31 


1 


4 


50 


1 


1 


4 








4 

4 


45 

36 


50 

1 






90 

1 



3 mos. sal'y to date, Sim 



90 



90 



ROBERT 



(Buffalo) 



EVANS. 



1867. I I 

Jan. 5 Mdse.*^ Invoice, 

Mar. 10 36yds.cordSatinl.25' 3 

316.2& 
250. 



May 31 Bal. bro't down, 



1887. 

27125' Mar. 
45 




10 

31 



Cash by mail, 

fcu;=pUU(ieu List, 



Pd. Duff, Gordon A Co. 



3 

4 




See Martin's account above, and Note 2, Suspended List, p. 134. 



ROBERT 



(Albany) 



BUTLER. 



1867. 



1 I 



Jan. 10 Mdse. 19 Invoice 



1 337 25 



1867. 



337 25 



Mar. ,20 Cash f mail, 
31 f 



3 

4 



3001 
37125 



337 



25 



ANDREW 



BELL. 



IMT. 



Feb. 15 1 1 full circle cloak, 

20 Coat and vest repaired, 
Mar. 10 1 Beaver Hat, 




52.S0 q 

40. *> 

12.50 



1807. 



Mar. 20 Our order to E. Pryor, ' 3 
31 i Profit & Loss, f.j4 




Considering thia a bad debt, we clooe it into Profit & Lobs. 

132 



Dr. 



JAMES 



(Foreman) 



DAY. 



Cr. 



i8«r. 

Feb. 


1 




10 
15 


Mar. 


31 



Cash, 

Black Dress Coat, 
Pd. order to W. Price^ 
Our order on R. Mar- 
tin, 83. 
I^alance. ' fol. 



2 
2 


20 
25 
12 

25 


1 


1867. 

Feb. 
Mar. 


1 

28. 
30' 

, 

i 


4j 


G8 


— 








150 



1/ 



150. 
82. 



2 


50 1 


'3 


50 


4; 


50 


! 


i 
150 



EXPENSE 



ACCOUNT. 



1867. 

Jan. 5 Cash, 

Feb. 5 n 

Mar. 30 // Store Rent, 

31 J. Carter, salary, i54.to 



1 
2 

4 



150 
3 20 

60 

90 

154 70 



186T. 

Mar. 31 Profit & Loss, 



fol. 4 154 70 



154 70 



EXCHANGE 



ACCOUNT. 



1867. ' 

Jan. 5 
Feb. 5 



Cash, 


1 


4 






10.50 2 


6 


50 








10 


50; 



1867 ' 

Mar- 31 Profit & Loss, 



fol. 



10 50 



10 50 



1. This and the preceding account are branches of Profit & Loss, and are always closed into it. — Note 4, p. 24, and Note 3, p. 
129. The student can never be at any loss in conducting them, they being of the same nature as Profit & Loss, and are 
therefore always debited when you lose, and credited when you gain by them. 



EDWARD 



PRYOR. 



1867. j I 1 !| 

Feb. '20 ' 2 pr. Blk. Pants, @ $8. 2 16 

Mar.. 1 1 Cash Loan 20th ult., 3x 200 

|lO i Mdse.pd. order to Wood | i 6 1 

20 Ourorder on A.Bell 



262. 
260. 




1867. I I I 

Feb. 20 Mdse. ^ Invoice, 2 60 

I Cash Loan, m | X 200 

Mar. 31 Hahuice, fol., t Zl 



262 



This method of entering loans dispenses with the Borrow & Loan accoant. 



SAMUEL 



GAYNOR. 



1867. I I 11 

Mar. 10 4 yds. best Blk. Cloth, ' 3 
1 // Cassimere, 
20 Paid order to H. Wal 
lace, 



n. 



40 
8 

48 



91 



1867. I I 



fol -. 



n 







--'■■'■■"" 


91 






'■ ' » 



133 



I f' 



Jlr. 



PROFIT & LOSS. 



Cr. 



PROOF SHEET, March 31, 1867. 



Drs. 



Crs. 



IMT. 



Mar. '31 Cash counterfeit money 



Andrew Bell, 
Expense acct., 
Exchange acct., 
Suspended acct., 
P. Duff's net gain, 
W. Gordon u 



fol. 



283.% 




1867. 

Mar. 



31 



Mdse., 



fol. 1 993 



993.50 
283.95 

Gain, 709.55 



993 



50 



50 




m 



•i 



|,:. 



V i 



:b 



Bead Note 4, p. 130. 

1. The marginal pencil figures on each side show how the net gain is found : Then, 

Duff's Capital was 2500. 
Gordon's 1500. 

4000 : 709.55 : : 2500 : 443.47, Duff's share of the gain. 
Then, 4000 : 709.55 : : 1500 : 266.08, Gordon's do. do. 

2. When each partner's share of the gain, thus found, is placed to the debit of this account, it must exactly close it. 



BALANCE 



ACCOUNT. 



1887. 

Mar. 


31 


Cash, fol. 

Mdse., 

E. Pryor, 

S. Gaynor, _^^ 
^^..^-^ »ao.55 


1 
1 
1 
3 


2100 

3217 

2 

91 


! 
05 
50 

55 


! 1867. 

Mar. 


31 


T. P. Cope & Sons, fol. 
Wm. Hay, 
James Carter, 
James Day, eos.so 
P. Duff, for net capital, 
W. Gordon, // 


1 

2 

3 
1 
1 


504 

200 

36 

68 

i 2884 

1717 


50 

47 
58 






5410 


5410 155 


} 






1 






—r 



P. Duff 

W. Gordon •. 

T. P. Cope & Sons 

W. Hay 

Cash 

Mdse. . 

Robert Martin . 

Jas. Carter . 

R. Evans . 

Robt. Butler 
I Andrew Bell 
i James Day . 
\ Expense Account 
! Exchange Account 
I Edward Pryor . 

Samuel Gaynor 

Profit & Loss 



fol. 



2 



See Balance accounts, pp. 17 and 35. 

This account is made up from the Ledger, in all respects as in individual business; and the difference between the amount 

of the effects, and the debits owing by the firm, is the net joint CHoital. The proportion of that capital which belongs 

to each partner, can only be known from his account. When each partner's balance is transferred, it must, as you see 

above, close this account : neither more nor less. 
If any of the partners overdraw their capital, then, of course, the balance they owe the firm, like a balance due from any 

other individual, is part of the effects and comes to the Dr. side of this account. 



1. The above Proof or Trial sheet must embrace all amounts that have been posted since 
the last balance — closed accounts as well as open ones. See Cope & Sons' account above. 
By this means we have not only proof by equal debits and credits, but we have the sum total 
of the postings to the Ledger agreeing in amount with the sum total of the Day-Book trans- 
actions. Compare the above with the Day-Book footings, p. 128. This is the strongest and 
most conclusive proof that our Day-Book is completely posted. If one dollar or one cent be 
omitted, it is evident that this Trial must fall just that amount short of the Day-Book foot- 
ing. On the contrary, if any entry by any means gets twice posted, the Trial will certainly 
show it by footing up just the amount of the error more than the Day-Book. 

2. In our next set our students will find an illustration of the monthly trial, also a full 
explanation of the mode of detecting and correcting errors. 

3. If the business had continued in this Ledger, you must recollect, that in re-openinsr. 
the amounts composing the old Balance account do not pass through the Day-Book, ibr this 
reason, when you take your next trial, it will foot just the amount of this Balance account 
more than the Day-Book. Therefore at each succeeding trial after the first, until the re- 
opening entries are passed again through the Day-Book, deduct the amount of the previous 
Balance from the footing- of the trial sheet, and the remainder must agree with the footing 
of the Day-Book as above. 



SUSPENDED 



LIST. 



186T. 



1 ii 



Mar. 31 Robert Martin, fol. 2 
Robert Evans, i 



20 
66 25 

86 25 



1867. ' i 

Mar. 31 Profit & Loss, 



fol. 




See Note 7, p. 129, and Note 6, p. 128. 

This account, as you perceive above, is closed into Profit & Loss. It will be seen by these accounts — p. 132 — that when a 
payment is received upon it, the account must be re-opened by bringing the suspended balance down. 

I wish the learner to observe that when the business is transferred to new books, as in this case, there is no occasion for 
closing the suspended accounts. Find the balances as directed — Note 3, p. 113 — and transfer them to the list and leave 
the accounts standing open until paid. But I have closed them, because, by so doing, it is easier to convey the idea of 
what was done with the balances, and more particularly when and how they were settled after the Ledger was closed, 
and all other accounts transferred. 

After what has been stated in Note 3, p. 113, it will be seen that it is never necessary to close an account for the mere pur- 
pose of finding its balance to make up any sheet or list. 



134 



135 



' 




■f^l 



SET II.— PART II. 



Opening with a transfer of the contents of the last Ledger. — Exhibiting 

ALSO the formation OF A NeW FiRM BY THE ADMISSION OF A NEW PARTNER. — 

Illustrating thl use of all the Auxiliaries in the new process for 
detecting errors and 

PROVING THE LEDGER. 

1. We have shown in the last set our method of proving the Books, applied to the Day- 
Book and Ledger only. That set, as already stated, is only intended for a retail business. 
As the business extends, the Auxiliaries and the Journal become necessary. I may however 
remark, that the Journal would seldom be required in any ordinary business, if all persons 
about the establishment were instructed in keeping a Day-Book upon this principle. ^ Where 
this is not done, a common Day-Book must be kept, from whence the book-keeper journal- 
izes the entries. 

2. Our purpose is now to show, that our method of detecting errors and proving the books. 
is applicable with the use of as few or as many of the Auxiliaries as the book-keeper may 
consider it necessary to keep. 

3. By a slight alteration in the form of the Invoice Book, and adding up and forwarding 
the amounts from page to page, it will be seen that this book, the merchandise debit column 
in the Journal, and the debit side of the merchandise account in the Ledger, will correct 
each other; and by attending to the footings of this book and the Journal, an error cannot 
pass unobserved for a single page. It is to be observed, however, that all entries affecting 
the debit side of the merchandise account, must originate upon this book. 

• 4. The next question that presents itself is, how are invoices of consignments to be dis- 
posed of? We exemplify two entries of this kind: one on April 30, p. 137, and one on 
June 4, p. 138. By these entries it will be seen that all such invoices, and invoices on ac- 
count of ourselves and others in company, can be entered upon this book, without disturbing 
the entries of our own invoices, the amounts of which are extended into the right-hand 
column to be footed and forwarded as before directed. 

5. By a similar arrangement it will be seen that we have made our Sales Book, the Mer- 
chandise credit column in the Journal, and the credit side of the merchandise account in 
the Ledger, agree with each other. 

By the cpmmon mode of keeping the Cash Book, its balance and that of the cash account 
in the Ledger must agree, otherwise there must be error in one or the other — perhaps in 
both. This, however, furnishes no clue to where the error exists. From our arrangement 
of this Book in connection with the cash columns in the Journal, it will be seen that you 
can always in a few minutes point out the very page and generally the side of the Book upon 
which the error exists. 

6. The Bill Books both control their representatives in the Ledger upon the principles 
explained in Note 4, p. 48. The Commission Sales Book governs the Consignment Sales 
acct. in the Ledger in a similar manner. And the same harmony is maintained between the 
Check Book and the Bank Account. 

7. The following Invoice Book opens with an inventory of the Merchandise brought into 
the new firm by the old partners, as will be seen by the Journal ; this Merchandise is carried 
to their credit. The Day-Book and Cash-Book show their other effects. 



136 



INVENTOBY of Merchandise in Store belonging to DUrr & GORDON, April 1st. 1867. 1 



D.B.I. 



^ 



6 pieces, 112?, 115?, 116, 112, 118, 117 = 691 yds. Ingrain 
Carpeting . . . • @ ^1. 

4 // Blk.Broadcloth,20?,21!,20!,19?=82yds. 10. 

2 ^ Blk. Oros de Naples, 60, 60 = 120 yds. 1. 

12 " Blk. Bombazine 
20 w Colored Florence 
20 // Blk. Crape de Paris . 

4 // Black Satin Vestings 

2 // Green Broad Cloth . 
100 If Prints 
20 tf Furniture 

1 // do. 



1510 yds. 

120 yds. 
41 vds. 



15. 
30 cts. 

5. 

2. 

6. 

3. 

3.25 



10. 



Boston, April 6th, 1867. 

D. B. 1 Messrs. Duff, Gordon & Co. 

Bo't of Wm. Hay. 
D. G. 500 ps. Merrimac Prints . . . . @ $3. 

&Co. ;200 // Furniture 4. 

80 // Rolled Jaconets 1-25 

QO tf If ff 1-50 

Packing cases ...... 

Paid Cash, Freight, and Cartage 
II 



D.B.I. 



691 
820 
120 
180 
453 
100 
240 
246 
300 
65 
2 



Mdse. 
Dr. 



50 3217 150 



New York, April 10th, 1867. 
Messrs. Duff, Gorpon & Co. 

Bo't of A. Stuart & Co. 
1 ps. Super Wool Black Cloth . . 22? @ $S. 

1 // Double Mill'd Cassimere ... 24 1.50 

— - 20. =============== 



D.B.I. 



No. 4. 
// 6. 



Messrs. Duff, Gordon & Co. 

Bo't of A. Stuart & Co. 
1 ps., 60 yds., Blk. Gros de Naples . . @ 75 cts. 
1 // 60 If II Bombazine .... 50 



30. 



Invoice of 40 pieces Brussels Carpeting, consigned to Duff, 
Gordon & Co., for sale by order and for account of A. 
Stuart & Co. 

10 ps., 360 yds. . * @ $1. 

10 // 360 // 1.25 

« 8. 1 10 If 360 // . . . Ingrain . . 1.50 

u 10. 10 /' 360 // , . . do. . . 2. 

New York, April 30th, 1867. 

May 1. ===== 



1500 

800 

100 

90 
4140 2494 i 4 > 

llle./ 



180 
36 



216 



45 

30 



75 



D B. 2. Messrs. Duff, Gordon & Co. 

Bo't of Edward Pryor. 

4 yds. Black Silk Velvet @ $4. 

6 '/ Fine Black Broadcloth . . . @ $8. 

Forwarded 



360 
450 
540 
720 



2070 



16 

48 



64 

6078 50 



137 



{ 



a 



1 



il 



; { 




May 1, 1867. 



j Bro't forward 

Messrs. Duff, Gordon & Co. 
D- B.2. Bo't of Samuel Gaynor. 

4 ps., 240 yds., Black Gros de Naples . . @$1. 

1 ps. Green Crape 

New York, May 1st, 1867. 

• 23. ' 



D.B.3. 



Philadelphia, May 10th, 1867. 
Messrs. Duff, Gordon & Co. 

Bo't of T. P. Cope & Sons. 
500 bbls. Superfine Flour . . . . @ $4. 
50 // Herring 6. 

June 4. 



F. H. 



Invoice of Broadcloths, consigned to Duff, Gordon & Co. 
for sale by order and for account of Francis Hardman 

6 ps. Super Blue, 19?, 20?. 21, 19, 18, 22 = 120 yds., @ $8. 

7 // Wool Black, 17, 23, 18, 22, 19, 21, 20 = 140 // @ 9. 
Packing case 

Boston, June 1st, 1867. 



D. B. 4. Taken to our account @ 3 months, 3 pieces A. Stuart & Co.'s 
Carpeting, viz. 2 pieces 72 yds. @ $1.50, and 1 piece 36 
yds. @ §2 



Messrs. Duff, Gordon & Co. 
D B.4. Bo't of S. Henry & Co. 

il2 Cashmere Shawls @ $50. 

12 // » 30. 

12 » I, 10. 

12 n Lamb's Wool Plaid do. . . 3. 

Rec'd Payment, 
New York, June 4th. 1867. S. Henry & Co. 

====== 10. 



D.B.5. 



D.B.5. 



Duff, Gordon & Co. 

Bo't of Wm. Hay. 
24 pr. Super Bath Blankets 



@$7. 



Duff, Gordon & Co. 

Bo't of Thomas Freeman. 
12 pr. Super 10-4 Rose Blankets 

===== 20. == 



@$6. 



Duff, Gordon & Co. 
D. B. 5. Bo't of James Haven. 

14 pieces Satin Ribbon 

i It 



@$2. 



I Duff, Gordon & Co. 
D. B. 5. Bo't of A. Stuart & Co. 

500 ps. Merrimac Prints . . , . @ $2. 

Rec'd payment By note @ 3 months, 
New York, June 20th, 1867. A. Stuart & Co. 

June 30, Total purchases to date . 



240 
25 



6078 50 



2000 
300 



960 

1260 

2 



265 



2300 



2222 



600 
360 
120 
.36 



180 



1116 



168 



72 



28 



1000 



J 1207 



50 



Inventory of Mdse. on hand June 30, 1867. 



4 ps., 320 yds., Ingrain Carpeting 
700 // Merrimac Prints 
400 barrels S. F. Flour . 
300 ps. Furniture Prints 
400 // // // . . 

10 Cashmere Shawls 
8 // // . . 

50 barrels Herring 
10 ps. 200 yds., Broadcloth 



4 
6 
4 
6 



230 
360 

82 



Blk. Gros de Naples 
Fancy // 
Broadcloth . 



@31. 

4. 
. 4. 

4. 

. 2. 

50. 

. 30. 

6. 
. 3. 

1. 
. 1. 

le. 



Crape de Paris . 5. 



Enter'd Ledger 2. 



CONCLUDING REMARKS. 

1. It is not necessary to pass the Inventory of goods on hand through the books, unless at 
the transfer to new books, although there are no objections to doing so in the common mode 
of keeping books ; but upon this plan, for the reasons named in note 3, p. 135, it would cause 
some trouble with the next trial sheet. 

2. In a business where the invoices are so long, that copying them entire becomes incon- 
venient, an abstract of them will be found sufl&cient for this book ; but we must again remind 
our student that he must see this book made complete. Every entry affecting the debit side 
of his merchandise account must originate here ; but when this is done, this book becomes 
a direct and perfect check upon the Dr. side of the merchandise account in the Ledger. 
Nothing so completely establishes : lie correctness of this part of the book-keeper's work as 
the agreement of this book with its representative in the Ledger ; and this is done on any 
day or at any hour you choose to compare its footing with those of the Journal : you are not 
obliged to wait until the time of making out the trial sheet. — Compare the footing of the last 
page with that of the debit merchandise column on the Journal, p. 161. 

3. On the other hand, as the Invoice Book is usually kept, it affords no protection what- 
ever against error in the Ledger. It is, indeed, of no practical use, except as a memorandum 
of the prices of the goods. 

4. When this book is Tiept in this form, the work of posting can be shortened by another 
process. Post all the personal accounts direct from here to the Ledger, post marking them 
as usual ; and at last post the merchandise debit from the end of the month or the end of 
the quarter, as may be decided upon, inserting the post mark on the same line with the sum. 
We shall show hereafter — p. 142 — that the Sales Book can be posted in the same way, and 
thus do away with the merchandise columns in the Journal. 

5. This is perhaps the shortest and simplest of all methods of posting; but there is not 
the same security against errors, nor the same facility in detecting them, that we have in the 
other arrangement : besides, there are some kinds of business to which it will not be appli- 
cable, whereas the arrangement we have given is applicable to any kind of business whatever 



139 



138 






5' 
1 



I 




^ 



THE SALES BOOK. 

The object for keeping this book is to avoid entering long invoices of sales upon the Day 
Book. It is generally ruled with one set of money columns ; but for our purpose two sets 
are required. By means of these two sets of columns, it will be seen that all entries, usually 
made on a Sales Book, can be made upon this, in the common form, and with very little trouble, 
All amounts affecting the Merchandise accountareseparated, footed, and forwarded like the 
credit Merchandise column on the Journal ; while all the particulars of the invoice of the 
sale are stated and exhibited in the inner column, as usual. It is so simple that any further 
explanation seems unnecessary. The first entry on April 30, and the last one on May 23, 
exemplify the management of entries when only a part of the amount is to go to the credit 
of merchandise. 

1* NEW YORK, Saturday, April 10, 1867. 



D.B. 



Sold Robert Butler (Buffalo), @ 3 mos., 
50 pieces Merrimac Prints . 
10 w Rolled Jaconets 

1 // 22? Fine Wool Black Broadcloth 
30 '/ Furniture Prints 
Packing case 



U. 

10. 
5. 



D.B.I. 



Edward Pryorto Mdse. for 2 yds. fine Brown Cloth @ $8. 

If 



D.B.I. 

D.B. 2. 
D.B. 2. 



Sold Richard Howe for Cash 
70 pieces Prints 
5 // Furniture 



200 
20 
225 
150 I 
l!50 



5. 



Packing box 



Tues. 20. 



* Paid E. Pryor's order to J. Burk in Mdse. 



// 



Sold Samuel Gay nor on his order favor of C. Rhodes, 
1 piece 20 yds. Super Black Cloth . . @ 11. 
1 // 118 yds. Ingrain Carpet . . 1 



280 
25 



50 



220 
177 



D.B. 2. 



Sold James Camp for Cash, 

2 pieces 19.', 20.'=40 yds. Super Blue Broadcloth @ 11. 

1 // 60 yds. Black Gros de Nap. . . 1. 

10 pair Bath Blankets . . . . .12. 

60 pieces English Prints .... 5. 



5 per cent, for Cash 

Friday 30 



75 



440 
60 

120 
300 

920 
46 



D.B. 2. 



@ 4.50, 8108. 
1 30. 



Sold Joel Post for Cash, 
24 yds. Purple Silk Velvet . 
30 n Crimson and Gold Fringe 
4 ps. 144 yds. A. Stewart & Co.'s Carpets 2.50 

Merchandise forward .... 



138 
360 



498 



1. There is no necessity to specify the articles you have sold in payment for this 

order. Your possession of it is evidence of your having paid it. 

2. When you furnish merchandise upon an open order — that is, an order permitting 

the bearer to draw any amount he desires— it is necessary to specify what you 
sel l upon it, a nd t o furniah the drawer of the order with a bill . 



140 



596 



16 



50 



305 75 
45 



397 



874 



138 



2372 25 



Saturday, May 1, 1867. 



Bro't forward 



D.B. 2. 



D. B. 2. 



Sold P. Duff on account, 

4 yds. best Black Cloth . 

1 yd. Black Silk Velvet . 
If 

Sold C. Spencer on his note @ 20 days, 
, 40 ps. Merrimac Prints . 
10 // Furniture 
1 // 20? Black Cloth . 
Packing case 



. @ S8. 




. @ $3. 

// 4. 

w 6. 



D. B. 2. 



D. B. 2. 



Sold W. Gordon on account, 
16 yds. Fig'd Gros de Naples 
1 Silk Cravat . 

It 

Sold James Carter on account, 
1 pr. Black Silk Gloves 

12 yds. Linen . 

If 



@ 31.25 



@ 75c. 



D. B. 2. 



Sold Robert Banks on account, 

1 yd. Fancy Velvet, 31.50. 2? Fancy Cassimere, @ 82. 

— If — — ^ 



D. B. 3. Received Cash for sales of Mdse. this day 

= Monday, 23. ==^ 



n. B. 3. 



Invoice of Mdse. shipped by the Brig "Tribune," Truck, 
Master, by order and for account and risk of Messrs. 
T. P. Cope & Sons, Philadelphia. 

40 bbls. No. 1 Mackerel . . . . @ $6. 
300 boxes Smoked Herring . . . . 1. 



CHARGES. 



Commission 5 per cent, on $540 
Cash paid for cooperage, cartage, &c. . 

E. E. New York, May 23, 1867. 
= Tuesday, 31. = 



S27. '' 
12. 



D. B. 4. 



Sold William Evans, payable in 10 days, 
4 ps. Furniture Prints 
2 1/ If // . . . 



@83. 
// 4. 



// 



D. B. 4. 

D. B. 4. 

D. B. 3. 
D. B 4. 



Sold J. Reed, payable next week, 

1 ps. Super Black Cloth 

If 

Sold Joel Post, payable in 10 days, 

2 yds. Super Blue Broadcloth 



22?, @ 38. 



. @39. 



Received Cash for sales 23d, $180. 31st, 386 . 

IT 



Sold R. Butler wrappers for a bale A. Stuart & Co.'s Carpet 



Merchandise forwarded 



141 



240 
300 



2 






8" 



284 50 



21 .50 



10 25 

6 50 
160 ' 



540 



540 


i 


1 
39 




579 




1' 


1 

20 



182 

18 

266 
I 
1 50 

3919 50 



^ 



8 



Saturday, June 4, 1867. 



1 Bro't forward 

D. B. 4. Sold James Reed on account, 

i 1 ps., 36 yds., Brussels Carpet . 

1 Silk Shawl .... 



@ 82.25 



81 
15 



D. B. 4. Sold Wm. Hay on account 1 Cashmere Shawl . 



D. B. 4. Sold Robert Parker, payable 1st July — 
1 Cashmere Shawl 



D. B. 4. Sold George Draper, on his note, 
6 Cashmere Shawls . 
6 '/ // 

6 Silk If 

======== 10. 



. @ $55. 

// 30. 
. // 20., 



830 

180 
120 



3919 

96 
60 

60 



D. B. 5. Sold R. Banks on account, 

6 pr. 10-4 Super Bath Blankets 
6 ff 10-4 // Rose 



// 



. @310. 
// 8. 



D. B. 5. Sold Edward Pryor on account, 

3 pr. 10-4 Super Bath Blankets . 

3 // 10-4 If Rose w 

1 ps., 21? yds., Blk. Broadcloth . 

20. = 



. @sio. 

// 8. 
. // 6. 



60 

48 



80 

24 
129 



630 



108 



D. B. 5. Sold William Garden for Cash deposited, 
500 ps. Merrimac Prints 

Total sales to date 



@ $2.50 



183 



1250 
6306' 50 



50 



CONCLUDING REMARKS. 

1. Compare the above footing with that of the credit merchandise column in the Journal, 
p. 161, and every person at all acquainted with the subject must be convinced that there 
cannot be a more conclusive evidence of .the correctness of this part of the work. 

2. When the Sales Book is kept in this lorm it admits of being posted, as we have 
directed at the Invoice Book, note 4, p. 139 ; post the personal accounts as usual, and the 
merchandise in one sum from the foot of the account above. 

3. If no Commission Sales Book is kept, the sales on consignment can be short extended 
as in first entry Apr. 30, p. 140. 

4. It is scarcely necessary to observe that the way the Sales Book is generally kept, it 
affords no means whatever of proving its contents to be all transferred or posted; and there 
is the strongest reason to believe that errors, deeply affecting the interest of the proprietors, 
jfrequently pass for ever undiscovered in this book. 

5. A few years ago a Western merchant called at the office of an extensive wholesale 
dealer in Philadelphia to pay his account. On referring to the Ledger it was found bal- 
anced. Upon the merchant representing that he had a subsequent invoice from them, the 
Sales Book was searched, and an invoice of about $1300 found marked off that book as if 
journalized, but no entry appeared upon the Journal. Now, in this case, it is evident that 
the discovery of this omission was purely accidental, and it is equally certain, that, by our 
plan, it would have been undoubtedly discovered before we had journalized another page. 

142 






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1867. 

Apr. 



Dr. 

1 Sundries 

P. Duff (S. A.) 
* P. Duff 

.W.Gordon (S. A.) 
I J. Carter (S. A.) 
10, Merchandise 

i R. Butler 
20 1 Merchandise 
30 Commission Sales 
Merchandise 



Baknce "^ old Ledger, fol. 4. 

Rec'd balance of his capital 

Rec'd on acct. 

Rec'd balance due on his capital 

Rec'd on acct of his capital 

Rec'd from Howe 

Rec'd on acct. 

Rec'd of Camp 

Rec'd for Stuart's carpets 

Rec'd of J. Post 



7716.78 



4&15 



May I 1 S. Gaynor^ 
Merchandise 
23 B. Receivable 
' Merchandise 

Duff & Gordon 
31 Merchandise 
S. Gavnor 
Duff & Gordon 



Balance in hand bro't down 
Rec'd on acct. 
Rec'd for sales this day 
Rec'd for Spencer's Note 
Rec'd for sales this day 
Rec'd Martin's acct. Ledger A. p. 
Rec'd for Sales this day 
Rec'd on acct. 
Rec'd of R. Evans, Ledger A. p. 2 



873X5 
864.^ 



June ' 4 



10 



20 



Balance in hand bro't do-v«m 

Joel Post Rec'd in full 

James Reed Rec'd on acct. 

Commission Sales Rec'd of Jennings for cloths 

R. Butler Rec'd '^ mail 

Commission Sales Rec'd of McKenzie for cloths 

Duff & Gordon Rec'd of R. Evans in full 

Profit & Loss Rec'd gain on auction purchase 



3158.90 
2939. 



219.90 



Total amt. received to date 



2100105 

115 53 

500 

1282 42 
2000 

305 

100 

874 

360 

138 



75 



7775 



75 



48 

50 

160 

284 

180 

20 

86 

20 

25 



15 



50 



87365 



9 65 
18 



100 
1200 

100 

1540 

41 

150 



25 



7775 



75 



825 



50 



3149 25 



11750 



50 



1. In business the Cash Book ought generally to be balanced every night; never at longer 
periods than a week. For obvious reasons, we could not, in a work like this, introduce a 
sufficient number of entries to do so : we have, therefore, only balanced it monthly. 

2. The manner of making the entries upon this book, is in all respects the same as note 
9. p. 53. The right hand column is used for carrying forward the sums total of all money 
received and paid, thereby enabling us to keep a constant check upon the Journal—Com- 
pare the footings above, June 30, with those of the Journal, p. 161. And it will facilitate 
the detection of error to balance this book when the Journal is footed at the bottom of any 
page, where you can compare the cash columns together. 

3. Observe, this Cash Book is always balanced in the inner columns, until the period of 

144 









ACCOUNT. 






Cl 


1 


1867. 

Apr. 1 


City Bank 


Paid in deposit 


5800 












Store Expenses 


Pd. for fuel 


3 












James Day 


Pd. him on acct. 


8 










10 


Mdse. 

R. Banks • 

P. Duff 


Pd. freight of W. Hay's Invoice 
Pd. him on acct. of store expenses 
Pd. him on acct. 


11 
20 
30 


60 








20 


B. Receivable 


Pd. R. Parker net proceeds of note 


979 


50 








30 


Commission Sales 

II H 

P. Duff 


Pd. cartage, &c., on Stuart's Carpets 
Pd. freight on # » 
Pd. him on acct. 


1 
24 
60 


50 






- 




W. Gordon 
James Carter 


Pd. him 
Pd. him 


25 
15 












City Bank 


Pd, in deposit 
Balance in hand carried down 


750 

48 


15 
75 


, 7727 


60 




7775 




May 


1 


R. Banks 
Expense acct. 
James Day 
W. Gordon 
P. Duff 


Pd. him on acct. 
Pd. a quarter's rent 
Pd. him on acct. 

// » 

II II 


~ 30 

60 

12 

10 

5 










23 


T. P. Cope & Sons 
James Day 
"W. Gordon 


Pd. Charges '^ " Tribune" 

Pd. him ten dollars, James Day* 

Pd. him on acct. 


12 
10 
40 










31 


Profit & Loss 
E. Pryor 
R. Banks 
W. Gordon 


For counterfeit money 
Pd. him on loan 
Pd. him on acct. 
II II 


20 

200 

10 

5 




t 








City Bank 


Pd. in deposit 


450 




864 










Balance in hand carried down 










4 




Pd. him on acct 


873 65 
5l 






June 


James Day 






• 


Commission Sales 
City Bank 


Duty, &c., on Hardman's goods 
In deposit 


748 
100 


1 








10 


II II 
Commission Sales 
James Day 


II 
Pd. F. Hardman in full, net proceeds 
In full 
On acct. 


100 

1855 

13 








20 


R. Banks 


90 








.. 




James Haven 


In full »»• 


28 




29391 






• 


■ 


Total payments to date 






11530 


60 






• 


Balance .:, i:....-i ..,::.... u^wn 


- 




_- J 


>; i 




11750 


50 

















— 



posting the Cash from the Journal ; it is then closed in the outer column ; but the balance 
is brought down or forward in the inner column. The balance brought down must not be 
extended as money received again. This was done before the last balance. It must, how- 
ever, be added in in striking the balance. 

4. As in the Ledger, we have dropped the useless appendages of to and by in this booL 

5. By having a folio column next the date or the money column the entries may all be 
posted direct from this book to the Ledger, and the sum total of money received and paid is 
posted in one sum from the bottom, as from the Journal. 

* Day's signature — See Note 7, page 76. 

K 145 



I 



li' 



CHECK BOOK. 

1. In this form we follow our favorite theory of making this book prove the correctness 
of its representative in the Ledger. Our column of deposits, and that of checks, is pre- 
served unbroken, and carried forward from page to page, corresponding with the debit and 
credit side of the Bank account in the Ledger — compare and see p. 168 — until we get our 
Bank pass-book balanced ; then we balance both our Check Book and Bank account in the 
Ledger, bringing the balances down as usual. The detection of errors in this form is so 
simple, and so speedy, that I cannot think it necessary to offer any directions. 

2. I must insist, however, upon your drawing and numbering all your checks upon your 
own book. Any deviation from this practice will, sooner or later, give trouble. 



Date. 



Depo- 
sit. 



Date. 



To WHOM 
PAID. 



Apr. 

May 



7041. 

1703.65 

4337.35 



Bro't 

down 

May 

June 



7329.30 
3051.20 

427&10 



1 


5800 


130 


750 


1 


400 


13 


91 




7041 




- - 



1887. 



2. Check. 

1 



Apr. 20 for 2 notes 1 703 65 




No. 1. New York, Apr. 20, 1867. 

The Cashier op the City Bank, New 
York, pay to myself, or hearer, Seven Hun- 
dred and three Dollars y^'^. 

$703. /^5y. P. Duff. 



May 23 W. Hav 

2703.65 



2 2000 



7041 



4337 35 

31 450 

{ 400 

4 200 

100 

10 491 95 

100 
20 1250 



May 31 Cope k Son 3 500 

I, li 
31 W. Hay 4 200 

II II 

Jane 4 Stuart's n'e 5 291 i 
4 eg. Henry 6 1060 20 



4 Cope A Son 7 XOOO No. . 



3051.20 

Eul. 



New York, 



,186 . 



Bro't 
down 



7329 30 
4278 10 



27S 10 
— - pay to 

7329 30 $ 



The Cashier op the City Bank^ New York, 



or bearer 



Dollars j-^. 



nnr 



I. ll 



'i 



3. When a deposit is made it must be entered in your pass-book, at the time it is made ; 
all writing in this book must be done by the bank officers. The New York city banks col- 
lect notes and bills in the city, free of charge ; but, if protested for non-payment, the owner 
must pay the expense of it. 

4. Three days' grace are allowed upon all notes, for which discount is also taken : thus, 
a not« having 60 days to run, 63 days' discount is deducted. — See note 2, p. 45. — In some 
of the States they charge 64 days' interest in such cases, charging interest both for the day 
of date and day of payment. 

5. You can at any time show the balance in the margin with your pencil, as is shown by 
the small marginal figures above ; but the deposit and check columns must be carried forward 
unbroken until your pass-book is balanced. 

6. To prevent fraud, when dealing with strangers, checks are sometimes made payable to 
order : the bank will not then pay them until the holder endorses them and identifies him- 
self the person named in the check. 



EXPENSE BOOK. 

1. This book is kept for the purpose of enabling the Book-keeper to avoid passing all 
minute items of expense separately through the books. One of the junior clerks, say R. 
Banks, is paid a sum of money sufficient to defray the expenses for a few weeks. ^ The Book- 
keeper debits Banks, and credits his Cash account for this money when placed in Banks' 
hands. The Cash account is, by this means, kept free from derangement ; and Banks should 
be provided with a separate drawer to keep this money in ; and as he pays it out for ex- 
penses he must enter a precise statement of all the items upon this book, adding it up and 
carrying forward the amount to the end of the month, or to the time when it is proposed to 
enter the amount in the books. After examining the amounts and additions, the Book- 
keeper debits Expense and credits Banks for the amount, at the same time balancing this 
book as below. — See Day-Book, note 3, p. 155. Afterwards this book re-commences in all 
respects as before, Banks receiving an additional sum from the Cashier when the amount in 
his hands is expended. 

2. If it be preferred, however, when the amount is paid into Banks' hands, the Book- 
keeper may make Expense Account Dr. To Cash at once, without passing it into Banks' 
account. The amount is then placed on the Cr. side of this book, and the details of ex- 
penditure on the Dr. side, in all respects as before, until the money is expended, when the 
book should be balanced, and re-commence anew as before. Either of these methods will 
greatly abridge the expense account in any business. 



Apr. 10 
12 



14 
15 



For Cash paid postages 

cartage of goods 
coach-hire 
laborers 
« 2 rms. wrapping-paper 2 50 , 



20 

j 

25 

30 



May 1 





10 


\i 


15 n 


25 


1/ 


June 


5 
10 


n 
n 




20 


II 




1867. 



41b twine 
for mending desk-stool 
ream letter-paper 
postage to N. Orleans 
cartage of goods 
Box rent at Post Office 
printing 500 cards 
' painting a new sign 
blank book 
wafers 
sealing-wax 
6 mos. sub. Tribune 
1 year n Sun 
Taxes 

postage for R. Butler 
II W. Hay 

laborers 
omnibus 
advertising 
postages 
wafers 
ink, sand, &c. 



2 50 
60 

3 50 
5 

6' 

20 
&0 

3 

3 

4 
10 
20 
50 
10 

1 
10 
10 
22 



June 30 By amount to R. Banks Cr. 45 



15 



45 



U(\ 



147 



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May 

June 

May 
June 


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1 





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THE DAY BOOK -SET II. , PART II. 



INTRODUCTORY REMARKS. 

1. This set opens with the formation of a new firm, by the admission of James Carter 
as a partner. It will be seen that the contents of the old Ledger form the opening entries 
of these Books. — Compare Balance account, p. 134, with the first entry in the following 
Day Book, also with the first entry in the Invoice Book, p. 137, and the first debit entry 
Cash Book, p. 144. It is arranged that each partner shall contribute $3000 capital; the 
two old members bring in the effects of their former business as so much of their capital, 
the new firm at the same time assuming their liabilities. 

2. The usual manner of opening and conducting partners* accounts is to credit each for 
what capital he pays in at the time the books are opened and for each succeeding payment 
afterwards. I would, however, recommend that two accounts be opened with each partner, 
a PRIVATE ACCOUNT and a stock account. — See the partners' private accounts, p. 165, 
and their stock accounts, p. 173. The stock account to be credited for the whole amount 
of capital to he paid in. The private accounts are to be debited for any amount that is de- 
ficient of the stock, and for what they withdraw from the firm, and credited for v, hat they 
pay in of the deficient stock, and for what they may temporarily pay over their capital. — 
See Duff"'s and Carter's accounts, p. 165. 

3. By this arrangement, the stock account of each partner remains undisturbed until the 
time of closing the books, and if any adjustment of interest has to take place it will be 
upon the private account. 

4. All judicious practical merchants are aware of the importance of avoiding all needless 
exposure of their affairs. This, in some establishments, is unavoidable where the partners' 
accounts and the results of the business are all exhibited on the public Ledger. In order 
to avoid this inconvenience I have, in this set, exemplified the Private Ledger. 

5. Keeping this book entails no additional trouble upon the book-keeper; there are no 
entries to make in it, except at the opening and closing of the Books. It opens — see p. 
173 — with nothing but the partners' stock accounts; the Profit & Loss, Balance and Sus- 
pended list are opened at the time of closing. By referring to these accounts — p. 174 — it 
will be seen that the results of the business can only be known to those who have access to 
this book; it is impossible to find out any thing about it from the public Ledger alone. 

6. In business it will also be advisable to place the opening entry of the business upon a 
Private Journal, from whence it is posted direct to the Ledger without appearing upon 
the public Journal. This will create no impediment to our system of proof, for the book- 
keeper has only to obtain the footing of this private Journal, and add it to that of the 
public Day Book and Journal, and the amount must agree with that of the Trial Sheet. It 
is deemed unnecessary to give an exemplification of this private Journal here. It stands 
connected with the public Journal upon the same principle as the private Ledger does with 
the public one. Indeed the readiest way to comprehend them is to consider the two books 
as one. 

7. The following Day Book is made up partly of original entries and partly by transfers 
from the old Ledger and the Auxiliaries. I shall show hereafter that the Journal may be 
composed direct from the Auxiliaries, without passing the entries through the Day Book, 
but for reasons before given — p. 62 — I do not consider it advisable to attempt that process, 
until after the student is entirely master of the whole subject. The mode of procedure in 
transferring the Auxiliaries to the Day Book is not, however, unlike that of journalizing 
them; it forms a useful preparatory exorcise for that operation. 

149 



h 






SET II.— DOUBLE ENTRY BOOK-KEEPING. 

1. It does not matter which of your Auxiliaries you transfer first: we shall commence 
with the Invoice Book, p. 137. We commence on the 10th April (the previous entry being 
already transferred in the opening entry), and transfer the two entries under that date to 
the Day Book — compare and see. Then turn to the Sales Book, p. 140, and do the same 
with three entries we find under that date, taking care to mark them off these books ; but 
not until they are actually entered in the Day Book — Note 4, p. 142; next, look into the 
Commission Sales Book, but it contains no entries on this day. Go on to the Cash Book — 
p. 144 — aiid you find two debits and three credits; pass them into the Day Book and mark 
them off as directed — Note 7, p. 53. The entries of the Check Book are generally made 
on the Day Book when they occur. The contents of the Expense Book are not usually 
transferred until the end of the quarter or the end of the month, as may be directed. 
Bills Receivable — p. 148 — has one transfer, and Bills Payable two upon this date. After 
they are transferred mark them off as directed in the Cash Book. This completes the 
transfer of that day's business from the Auxiliaries : you now re-commence and go over 
them all in the same way again for the next day's business, and so on until the contents are 
all transferred. Observe, you cannot transfer several dates from any one book in one entry, 
because this throws the dates in confusion in the Ledger. 

2. Our Day Book is footed and forwarded from page to page, and if all journalized cor- 
rectly, must always exactly agree with that book. We generally only pencil the footings 
of the Day Book in practice : and you ought to bring forward these footings as fast as you 
journalize, in order to get the earliest notice of error if it gets in. You may foot your 
Day Book column any where on the page, when you desire to find the amount corresponding 
with the foot of the page on the Journal. 

3. In making compound entries upon this Day Book, you must guard against the practice 
of extending both debits and credits, as many persons do. For instance, in the first entry 
on the opposite page, if we had full extended the $5410.55 a second time, it would have 
caused a disagreement between the Day Book and Journal at once, of that amount. 

4. In order to have our books all agree in amount, it is necessary that all entries relative 
to the balancing of accounts at the time of settlement should originate upon this book. — 
See first entry, May 10, p. 153. 

5. We have dropped the useless practice of perpetually writing the name of our place 
of business at the head of every page of our Day Book and Journal. ' It is proper and 

.perhaps necessary to do so on the first page of any book, but the repetition of it afterwards 
is entirely useless. But it will often be found useful to insert the day of the week with the 
day of the month. 

6. I would advise the student not to be in too much haste to write these exercises, but 
first take a survey of the operations recorded by tracing them from one book to another up 
to the Ledger: thus mentally examining the whole subject before he attempts the mechani- 
cal execution of it. — See Note 4, p. 27. 

7. I need hardly observe that if the preceding Sales Book be dispensed with then full 
particulars of every sale must appear upon the Day Book. 

150 



NEW YORK, Thursday, April 1, 1867. 



P. Duff, W. Gordon, and J. Carter have this day entered into partnership; 

it is agreed that each partner shall furnish a capital of . 3000. 

Duff and Gordon bring in as a part of their capital, the effects of their late 

firm, and the new firm assumes their liabilities '^ their Balance acct. 

Ledger A. fol. 4, viz. : 
*Cash in hand . . . . "^ Ledger A. fol. 1. 
Merchandise 
Edward Pryor owes . 
S. Gay nor 

Balances due to 
T. P. Cope & Sons . 
Wm. Hay 
James Carter . 
James Day 

P. Duff for his net capital 
W. Gordon do. do. 



Ledger A 



1. 
3. 
3. 

fol. 1. 
1. 
2. 
3. 
1. 
1. 



2100.05 
3217.50 

2. 
91. 

504. 
200. 
36.50 

68. 
2884.47 
1717.58 

5410.55 



u 



Rec'd the following sums in cash "^ Cash Book 1. 
From P. Duff for Balance due on his capital 

H do. on his private account . 

// W. Gordon for Balance due on his capital . 

u James Carter on account of his capital 
If 

C. B. 1. 



115.53 

500. 
1282.42 
2000. 



Paid the following sums 
To the City Bank in deposit 
For Fuel .... 
To James Day on account . 



5800. 
3. 
8. 



•James Carter's ^ joint capital is . . . . $3000. 

Balance due him by Duff and Gordon as above is 36.50. 

Cash received as above .... 2000. 2036.50 

Balance due on his capital to debit of his private account . 

Saturday, Id 



.Bought Mdse. of Wm. Hay @ 3 mos. "^ Invoice Book 1. 
Paid cash for freight of same 



2494.40 
11.60 



Bought of A. Stuart & Co., at 30 days, Mdse. "^ Invoice Book, p. 1. 



Sold R. Butler on account, @ 3 months, 

Mdse. "^ Sales Book, p. 1 

Sold E. Pryor on acct. Mdse. "^ S. B. 1. 
Sold R. Howe for cash do. do. . . 



596.50 

16. 
305.75 



Received cash of R. Butler on acct. 

n 
Paid cash to R. Banks on acct. of Expenses 
// do. to P. Duff on account 



20. 
30. 

Forward 



1. This entry embraces both sides of the Balance account in the last Ledger.— See p. 134. The pupil 

will insert the pages of his own Ledger — not ours. 

2. As the journalizing proceeds, mark the entries oflf the Day Book as directed.— Note 7, p. 28. The 

pages of the Journal are not necessary : the dates are always a BuflScient reference. 

3. See Note 2, p. 149. 

151 ~ 



5410 55 



I 
3897 95 



5811 



963 50 

2506 

I 

216 . 




I 



2 






n 



Saturday, AprU 10, 1867. 



Bro't over 
Received Samuel Gaynor's note No. 1, @ 30 days, for bal. of acct. 



AccM Wm. Hay's draft No. 1 on us, @ 10 days, for bal. due him 1st inst. 
Acc'd T. P. Cope & Sons' draft No. 2 on us, @ 10 days, for bal. due them 

Gave James Day our order on E. Pryor, payable in Merchandise, for 

Tuesday, 20. 



Paid our acceptance No. 1 to Wm. Hay, due 23d inst., $200, less disct. 

10 cts $199.90 

do. do. No. 2 to T. P. Cope, due 23d inst., 
$504, less disct. 25 cts 503.75 

Paid by check on City Bank .... 703.65 
Amount of discount is .35 



Paid E. Pryor's order in favor of J. Burk in Mdse. from store 
Paid S. Gaynor's order in favor of C. Rhodes in Mdse. from store 



Cash to Mdse. received for sale to J. Camp . 



Mdse., Dr. to A. Stuart & Co. for Invoice of Silks, &c. 



Discounted for R. Parker his note No. 2, @ 4 mos., for $1000. 
Paid him in cash, net proceeds 



43^^ months' discount is . 



Friday, 30. 



979.50 
20.50 



Paid cash freight and cartage of A. Stuart & Co.'s goods 
// P. Duff on acct. ...... 

tf Wm. Gordon 

// James Carter ... ... 

If the City Bank in deposit 

n 



25.50 
60. 
25. 
15. 
750. 



Received cash for sale of A. Stuart & Co.'s goods, C. S. B. 1. 

Mdse f S. B. 1 

Saturday, May 1( 



// 



360. 
138. 



'Rec'd-on account of our James Carter, cash deposited in City Bank. 
Net proceeds of his Bill on Gibson, Bright & Co. . . . $300. 



Interest due him on Hall's mortgaore 



// 



Bought Mdse. of Edward Pryor, I. B. 1. 
do. of Sam'l Gaynor, do. 2. 



// 



Sold Mdse. ^ Sales Book 2. To P. Duff on account 
To C. Spenser on his note No. 3 @ 20 days . 

If W. Gordon on account . . . . . 

If James Carter on account . . . . 

H Robert Banks 



// 



*Rec'd of R. Butler his note, No. 4, @ 3 mos.,' to close acct. 

Forward 



1. Tlie firm have no entry to make with Gibson, Bright & Co. ; though this bill waa drawn by Carter 
one of our partners, it was on his own private account. We credit him for the money received 
for the Bill, and also for the interest collected on Hall's mortgage. 

X The number of a note must always accompany it, to enable ua to post it as directed, note 1, p. 167. 




19873 25 
91 

200 
504 

20 



704 

45 
397 

874 

75 



1000 



875 150 



498 



400 



329 



359 75 

i 

496 50 
26742 



Saturday, May 1, 1867. 



Bro't forward . 
Gave our note. No. 3, to A. Stuart & Co., to close acct., for 

■■- - -^ •■ 1/ — — — 

Received Cash on acct. from S. Gaynor, C. B. 1. . . . 50. 

a II for sales this day 160. 

-" - II '. 1 



Paid Cash to R. Banks on acct., C. B. 1 
'/ // a quarter's rent of store 
/' II to James Day on acct. . 
ff II to W. Gordon // 
// to P. Duff II 



30. 

60. 

12. 

10. 

5. 



Monday, 10. 



' Rendered James Day his account; balance due him is . 



* Rendered Samuel Gaynor his account; balance due us is 

~—^ = Thursday, 13. ■-— :.:i 



Received Cash, paid the City Bank in deposit, for S. Gaynor's note No. 1 

r^ ^ - — - — — = ^ Monday, 23. 

Gave Wm. Hay our check on the City Bank on acct. for . 



// 



Bought Mdse. of T. P. Cope & Sons on acct., I. B. 2. 

______ /; 



Shipped by the Brig "Tribune," by order and for account of T. P. Cope 

& Sons, 

I Mdse. "^ Sales Book 2 540. 

' Paid charges in cash ........ 12. 

Commission on $540, @ 5 per ct 27- 

• ^ ,- ' 

Received Cash for Spencer's Note No." 3 284.50 

// II from R. Martin for an old debt due Duff & Gordon 20. 

If II for sales of Mdse. this day .... 180. 

— -•- /.* " 

Paid Cash to .James Day on account ..... 10. 

11 to W. Gordon // j40. 

^--= = Tuesday, 31 • -z z: 



Balance in deposit in the City Bank this day on settlement 

■ — ^- — II 

Received Cash this day for sales .... 

" II of S. Gaynor on account . 

n If oi^. Evans for Duff & Gordon 

„ 



Paid Cash to Edward Pryor in loan 
» II Lost by counterfeit money 
n II to R. Banks on acct. 
n 'I W. Gordon . 
'/ '/ City Bank in deposit 



Forward 



86. 
20. 
25. 



200. 

20. 

10. 

5. 

450. 



'26742 
291 



210 



117 

28 

82 

91 

2000 
2300 



579 



484 50 

50 

4337 35 



131 



685 
38127 



85 



1. In order to preserve that liarmony between the books, upon wliich our method of proof i- fiiuink-d. 
no entry must appear upon the Ledger (except the olosing entries at the geni'ial liiUance- witliout 
originating upon the Bay Book or some of the auxiliaries. When wo settle with an iadividual we 
enter the balance as above, and pass it through the Journal. — Notes 1 and 2, p. 15'J. 



153 



/ 



Tuesday, May 31, 1867. 



Friday, June 10, 1867. 



lii 



-I 

li 



Bro't over 
Sold W. Evans on acct. Mdse. '^ Sales Book 2 

James Reed on acct. n u 2 , 

Joel Post // " » 2 . 



20. 
182. 

18. 



' Sold Robert Butler (Erie) on acct. Stuart & Co.'s goods, C. S. B. 1 576. 
j of our Mdse., S. B. 2 1.50 



Gave T. P. Cope & Sons our check on City Bank on acct. 
Grave W. Hay u h # 



* Received cash on acct. of James Carter, deposited in City Bank. 

For Cutler, French & Co.'s Note 250. 

From Stay & Hall on acct 150. 

Saturday, June 4, 

Take to our acct. 3 ps. A. Stuart & Co.'s Carpet, I. B. 2 . 

I' 

Bo't Mdse. of S. Henry & Co.. I. B. 2, @ 5 f ct. disct. for Cash $1116. 

Net amount paid by check on City Bank . . . . 1060.20 

I>iscount 55.80 



Paid by check on City Bank our Note, No. 3, in favor of A. Stuart & Co. 

. - g . 

J. Reed's private acct. is Dr. for transfer from '- Sundry Drs. acct." . 



Received Cash, deposited, of E . Pryor for our loan of 31st ulto. 



Sold Merchandise, S. B. 3, to James Reed on acct. ... 96. 

» to Wm. Hay n . . .60. 

» to Robert Parker // , . .60. 

» to Geo. Draper on Note No. 5, @ 3 mos. 630. 

// _ — — 

Received Cash of Joel Post in full 18. 

'/ of James Reed on acct 100. 

> u of Jennings & Co. for sale of Hardman's goods 1200. 



Paid Cash to James Day on acct. . . . . 
I n to City Bank in deposit . . . . 

# to freight and duty on Hardman's cloths, 



5. 

100. 

748. 



Settled with T. P. Cope & Sons. 

Gave them our check on the City Bank for 

Our Note, No. 4, at 30 days to close acct. 



1000. 
221. 



Forward, 



1. Here, as at Note 1, p. 152, the firm has collected money for tneir partner. Carter. It is almost unne- 

. cessary to say, that we have uo entry to make al>out Cutler, French & Co.'s Note, nor about Stay 
& Hall's account, though we name them on the Day Book. "We credit Carter for the amount col- 
lected; and he keeps his own private account with these parties. 

2. We do not pass this cash into the Cash account because we sent it immediately to the Bank. The 

Bank account by this means materially diminishes the cash transactions, and renders that acct. 
easier to keep.— Note 1, Fryer's acct., p. 133. 



38127 



220 



577 

500 
200 



85 



50 



400 
180 



1116 

291 

182 
200 



846 



1318 



853 



1221 
46232 35 



Brot. Forward 



Bot. of William Hay on account Mdse. I. B. 2 
Bot. of Thomas Freeman on account do. 2 



Sold R. Banks on account Mdse. S. B. 3 

do. E. Pryor do. 3 . . . 

n — 

Discounted at City Bank R. Butler's Note No. 4. for $496.50 
^ Net proceeds at our Cr. in deposit .... 
55 days' Discount ....... 

It — 

Received Cash on account of R. Butler by mail 

Rec'd do of McKenzie & Abbot for sale of Hardman's 

goods, C. S. B. 1 . 
Rec'd do. of R. Evans, for Duff & Gordon . . 

- •- - ^- --- - n -- ^ - 

* We close sales of Hardman's cloths. Total sales C. S. B. 1, 
Our commission on the same 5 "^ ct., is . 

Net proceeds paid F. Hardman in cash, is . . . 

• - — n 

Paid cash deposit in the City Bank .... 
Paid James Day cash in full 

Monday, 20. 

Bot. Mdse. of James Haven on account I. B. 2 

Bot. Mdse. of A. Stuart & Co. on our Note, No. 5, @ 3 mos. 



168. 
72. 

108. 
183. 



491.95 
4.55 

100. 

1540. 
41.25 

is $2740. 
137. 

1855. 

100. 
13. 



28. 
1000. 



// 



Sold Mdse. to W. Garden for cash deposited 



Bot. at auction 10 cases Irish linen, amounting to 81500. Sold them again 
at the auction room for 10 ^ ct. advance. Rec'd the advance in cash. 



Paid cash to R. Banks on account ...... 

: Paid cash to James Haven in full ...... 

I :=.=r-::r^=:^ ThuTScLay, 30 = 

I * Cash paid Expenses Apr. 1st to date by R. Banks '^ Expense 
I Book 1 ........ . 

R. Banks' salary as clerk 1st April to date is . 

* Total transactions to date 



90. 

28. 



45. 
300. 



154 



1. See Note 3, p. 143. Where you will see how this account is closed upon the Sales Book. There is 

no separate account opened for it upon the Ledger. 

2. For the reasons given in Note 2, last page, this cash never appears in the cash account. 

S. Refer to Notes 1 and 2, p. 147. You perceive Banks must here bo credited for his salary and also for 
what he has paid out for the store by the Expense Book. 

4. Compare this amount with the footing of the Journal, p. 161. This affords indisputable proof of the 
Day-Book being entirely Journalized. To every practical merchant the importance of this test 
between these books, must be at once apparent ; for there is no step in the process of book-keeping, 
where omissions are more likely to take place, and where they are less looked for than between this 
book and the Journal. The major part of Book-keepers direct all attention to the Ledger: and 
they will sometimes search for weeks to find out a trifle that jirevents their trial from coming out 
correct, while they perhaps never spend an hour in comparing their Day-Book and Journal. And 
after all, their trial of the Ledger proves nothing, even when it comes out correct, except that the 
Ledger agrees with itself. If it does not prove it to agree with any one other book, while our trial 
proves it to agree with the whole of them.— Note 4, p. 142. 



155 



46232 35 
240 

291 



496 50 



1681 25 



1992 

113 

1028 
1250 

150 

118 



345 
53937 10 






REMARKS ON THE JOURNAL. 

The following Journal is, in form, similar to that of the Day-Book, p. 125. 

The columns on the left of the writing contain the debits and those on the right the 
credits. The columns next the writing on each side are the only ones posted in detail : the 
two others representing cash and merchandise, are footed and forwarded from page to page 
to the end of the month, or the end of the year, as may be desired, and from there posted 
in one sum into the Ledger, and the post mark affixed as usual. — See posting of our cash 
and merchandise accts. from the foot of page 161. 

In the Journal in the first part of this work, an entry was made for every receipt and 
payment of cash, and for every purchase and sale of merchandise. Here you will find 
several collected together — see second and third Day-Book entries, April 1st, — and the 
student will perceive that there are several other entries that might be incorporated in one, 
for instance, the first and second entries on the 10th April, are both merchandise debits, and 
might, therefore, have been journalized in one entry ; but I thought it better to leave some- 
thing to the student's own discretion in the matter. 

Before footing your Journal, always go over the entries again to see that all the amounts 
are extended into the proper column. Then foot them first upon waste paper, which ought 
to be ruled to the pattern of the Journal, otherwise you are sometimes liable, after the addi- 
tions are correctly made, to transpose the figures, and place them in the columns to which 
they do not belong. 

As you foot and forward the Journal, the Day-Book ought to be kept up also in order to 
get the earliest intimation of error, if it gets in. The Day-Book is generally only footed in 
pencil, and you can do it anywhere on the page where you wish to obtain the amount that 
ought to correspond with the Journal. 

In posting the Journal to the Ledger you make use of the same phraseology as upon the 
Double Entry Ledger in the first part of this work. In our last Ledger, which is intended 
principally for a retail business, we, to some extent, particularized the Day-Book entries : 
that principle of posting, however, can hardly ever be carried to any extent in a wholesale 
business. Indeed it will rarely ever be necessary, because bills or invoices almost always 
accompany the sale. 

As your posting is completed, you should always go over the work again and check it as 
directed — Note 2, p. 32. No one can expect to keep his books free from errors without this 
precaution. 

These books are specially adapted to daily posting, and if my young readers are disposed 
to profit by my experience in this matter, they will never allow their books to fall behind for 
a single day, if they can possibly avoid it. In some kinds of business, keeping the books up 
is almost indispensable for successful and efficient management. There are a great many 
book-keepers who have got it into their heads, that posting books once a week, or once a 
month, is sufficient. There is a method of journalizing and posting all accounts only once 
a month, upon which I shall have some observations to make hereafter : but I now repeat 
that my advice to all book-keepers is, to keep their books in such a manner that when called 
upon for an account, they have only to open the Ledger and find the whole account before 
them, ready for settlement. Those who will give this mode of posting six n:onths' trial, 
will not be easily persuaded to change it. 






i|; 



156 



! 



Drs. 



NEW YORK, Aprn 1, 1867. 



Cbs. 



Hdse. 



3217 50 



Cash. 



210(y 05 



2506 



216 



2 
91 



3 
1 



8897 95 



309 



IOC 



75 



Sundries To Sundries, $5410.55 
1 Cash .... 
Mdsc. .... 

Edward Pryor , , , 
Samuel Gaynor . 

To T. P. Cope & Sons . 

William Hay . 

James Carter's Stock acct 

James Day 

P. DuflF's Stock acct. 

W. Gordon's Stock acct. 



n 
II 
It 

II 



Ledg. A, fol. 1 



Cash. 



Mdie. 



// 

// 

II 

I 

I 

I 

I 

I 

It 



Cash To Sundries, 

To P. Duff's Stock acct. 
" P. Duff .... 
" W. Gordon's Stock acct. . 
" James Carter's Stock acct. 



504 
200 
36 50 
68 
2884 47 
1717 58 



1! 115 53 

ll 500 

i; 1282 42 

1 2000 



// 



5800 4 

3 4 

8 3 

963 50 1 



Sundries To Cash 
2 City Bank 
Expense .account. 
James Day. 



James Carter, Dr. 

To James Carter's Stock acct. 

" 10. -= 

Mdse. To Sundries, 

To Wm. Hay .... 
Cash 



5811 



963 50 



2 2494 40 



// 



1160 



tt 



Mdsc., Dr. to A. Stuart <fc Co 2 216 



596 50 5 
16 3 



Sundries To Mdse., 
R. Butler. 
Edward Pryor. 
Cash. 



918 2d 



Cash To R. Butler, 5' 



100 



// 



20 



5 
1 



5939 at) 64031 75 7530 

6403 75 
5939 50 

19873 25 



Sundries To Cash, 
R. Banks. 
P. Duff. 



Amounts forward 
Cash 
Merchandise . 



Proof 



50 



1. In opening new books, always give a direct reference 

to the old Lodger for the transfers. 

2. We now open an account with the Bank, and debit it 

for all deposits, and credit it for all checks we draw. 
—Notes 1 to 7, p. 146. 
Post mark each entry with the Ledger page, on the same 
side and on the same line with the sum. Some 
write their jMjst uiai'ks in red, but I can see no 
practical utility in doing so; and it keeps you 
handling two pens, while it is desirable to confine 
your whole attention to matters of greater import- 

al'.Ctr. 



1 il ' 



13082 10 5872 60 
5872 60 
918 25 

19873 25 



913 25 



157 



M 






\k 



442 



874 



2 Drs. April 10, 1867. Cba. 

• • 

Mdse. Cash. . . Cash. Mdse. 

5989 50 6403 75 7530 Bro't forward, . . . 13082 40 5872 60 918 25 

11 
91 3 Bills Receirable, No. 1, To S. Gaynor to close, 1 91 
— . // 

1 Sundries To Bills Payable, 

200 2 Wm. Hay for No. 1 3 200 | 

504 2 T. P. Cope & Sons for No. 2 . . . .3 604 
// 

20 3 Jameg Day To E. Pryor 3 20 

20. 

704 3 1 Bills Payable To Sundries, 

To City Bank, No. 1, $200, and No. 2, $504, 4 703 65 
" Interest acct .4 35 

i " 

I Sundries To Mdse 

45 3 Edward Pryor. 

397 1 S. Gaynor. 

— n — 

874 Cash To Mdse 

-. n 

75 Mdse. To A. Stuart A Co 2 75 

// 

1000 3 Bills Receivable, No. 2, To Sundries, 

To Cash ........ 

" Interest acct 4 20 50 

===. 80. 

Sundries To Cash 

25 50 5 Commission Sales. 
60 1 p. Duff. 

26 1 Wm. Gordon. 
15 1 Carter. 

750 4 City Bank. 

., W 

498 Cash To Sundries, 

To Commission Sales *> 360 

" Mdse 

25156.75* 25156.75 

-. - -'-^= May 1, -.... 

400 4 City Bank to James Carter 1 400 

n 

829 Mdse. To Sundries, 

To E. Pryor 3 64 

" S. Gaynor 1 265 

If 

Sundries To Mdse 

37 1 P. Duff. 
284 50 3 Bills Receivable, No. 3. 

21 50 1 W. Gordon. 
10 25 1 James Carter. 

6 50 5 Robert Banks. 

II 

496 50 3 Bills Receivable, No. 4, To R. Butler to close acct. 5 496 50 

12622 75 Amounts forwarded, 16282 40 

7775 75 Cash, 7727 60 

6343 50 Merchandise 2732 

26742 'Proof 26742 



979 50 



875 50 



138 



Drs. 

Mdse. Cash. 
6343 60 7775 75 12622 75 
i 291 
210 



May 1, 1867. 



Bro't forward, 
II 



2300 



30 
60 
12 
10 
6 

28 
82 

91 

2000 

679 



484 50 



359 76 



I 



10 
40 



2 A. Stuart & Co. To B. Payable No. 3 to close acct. 

— II . 

Cash To Sundries, 

To S. Gaynor 

" Mdse. received for Sales . . . . 

II 

Sundries To Cash 

6 R. Banks. 

4 Expense account. 

3 James Day. 
1 W. Gordon. 
1 P. Duff. 

10. 

3 1 James Day's old acct. Dr. to his new acct. 

II 

1 2 Samuel Gaynor's new acct. Dr. to his old acct. 

13. 

4 City Bank To Bills Receivable No. 1. . 

23. 

2 3 William Hay To City Bank 

II 
Mdse. To T. P. Cope & Sons . . . . 

// 

2 T. P. Cope & Sons To Sundries, 

To Mdse 

" Commission 

// 
Cash To Sundries, 

To Bills Receivable No. 3 . 

" Duff <fc Gordon 

" Mdse 

H 

Sundries To Cash 

3 James Day. 

1 Wm. Gordon. 

31. 



131 



1. Each note being posted separately, it becomes neces- 

sary to particularize them by nnmber on the Jour- 
nal* — See Bill acct., p. 167. 

2. Compare the total footings here with those of the Day 

Book, p. 152. 

* These figures are given to assist the learner in 
making out the trial sheet — p. 172. 



158 



4337 35 4 4 City Bank new acct. To old acct. 

// 
Cash To Sundries, 

To Mdse 

" S. Gavnor . . . . 
" Duff & Gordon . 

u 

Sundries To Cash . . . . 

3 6 E. Pryor (in loan). 

4 Profit <fe Loss. 

5 Robert Banks. 
1 W. Gordon. 
4 City Bank. 

' Amounts forwarded, . 

v>3.Sll^ • • • • • 

Merchandise . • • . 



2UU 
20 




10 




5 




460 


•0883 10 


8601 25 


8643 50 



38127 85 



Proof 



1. Hero you first post the debit and balance Day's ac- 

count ; then post the credit in the new account. 

2. Here you must first post the credit and balance Gay- 

nor's acct. ; then post the debit in the new acct. 

3. Hay is made Dr. to the Bank for the check ; no entry 

is required in the Cash Book. 

4. You must now also balance your Check Book. — See p. 

146. 
6. See Note 1, p. 133. 



159 



Cks. 

Cash. 

16282 40 7727 60 2732 
291 



60 



3 
1 



4 
2 



28 

82 

91 

2000 
2300 



6 



27 



2S4 50 
2U 



4 4337 35 



1 
6 



20 
26 



25838 26 
8591 60 
3698 

38127 86 



100 



li: 



640 



12 



180 



60 



80 



686 



Drs. 



May 31, 1867. 



Cns. 



Mdso. Cash || ^ 

seiTsO 8601 25 20883 U 1 



tA 



Bro't forward, 
It 



Sundries To Mdse. 
20 6 1 W. Evans (S. D. acct.). 
182 6 James Reed (S. D. acct). 
18 6, Joel Post (S. D. acct.). 



577 50 5 Robert Butler To Sundries, 
To Commission Sales 
I " Mdse. 



Cash. 



Mdse. 



25838 2^ 8591 6(i 369{ 

m 



500 
200 

400 



Sundries To City Bank 
2 T. P. Cope & Sons. 
2 Wm. Hay. 



// 



' i 



\^ 



180 
1116 



4 "City Bank To James Carter . 

^^^^-^^-= June 4. 

Mdse. To Commission Sales. 



14868.60 





291 


1 

l' 




182 


6 




2ud 


4 

1 



Mdse. To Sundries, 
To City Bank 



" Interest 4 



576 



7oa 



400 



18U 



4 1060 2C 
55 80 



BiUs Payable No. 3, To City Bank 
ff 



James Reed To Sundry Drs. acct. 
u 



City Bank To E. Pryor for Loan of 31st ultimo, 



4 291 
6 182 
3 200 



96 

60 

60 

630 



6; 

2 

6 
3i 



Sundries To Mdse., 

James Reed. 

Wm. Hay. 

Robert Parker (S. D. acct.). 

Bills Receivable, No. 5. 



1318 



5 
100 

748 

1221 



26373 60 
9919 25 
9939 50 

46232 33 



// 

Cash To Sundries, 

To Joel Post in full 
" James Reed 
" Commission Sales 



6 18 
6 100 
5 1200 



r/ 



Sundries To Cash . 
James Day. 
City Bank. 
Commission Sales. 



853 



1:, 



T. P. Cope & Sons To Sundries to close acct. 
To City Bank . 
" Bills Payable, No. 4 

Amounts forwarded 
Cash 
Merchandise . 

2 Proof . 



1. These letters indicate Scndrt Debtoks accoimt. — See 

p. 170. We place these marks here as a guide to 
learners, but no such marks are required in busi- 
ness, because the book-keeper determines for him- 
self, when he is posting, whether he will open an 
account for the iudividual or place his name with 
the amount on the Sundry Drs. account. 

2. See Day Book, footing p. 154. 



4. 
3 



1000 
221 



32022 25 
9444 60 
4765 60 

46232 35 



60 



160 




Drs. 

Mdse. Cash. j j 

9939 50 9919 25 26373 60 

I 
240 



-1 



L028 



June 10, 1867. 



Bro't forward. 



lOf 

18£ 



5 
3 



Mdse. To Sundries, 

To Wm. Hay 

" 1 Thomas Freeman (S. C. acct.) 
// 

Sundries To Mdse 

R. Banks. 
E. Pryor. 



491 95 4 
4 55 4 



Sundries To Bills Receivable No. 4 

City Bank. 

Interest. 



1681 25 



1992 



Cash To Sundries, 
To R. Butler . 
" Commission Sales 
" DuflF & Gordon . 

ff 

Commission Sales To Sundries, 
To Commission 
" Cash .... 



100 
13 



3 



Sundries To Cash. 
City Bank. 
James Day in full. 



1/ 



20. 



Mdse. To Sundries, 

To James Haven (S. C. acct.) 
" Bills Payable No. 5 . 



ii 1250 4 City Bank To Mdse. 



isoj 



// 



Cash To Profit & Loss . 



// 



90 

28 



345 



5 
6 



Sundries To Cash . 
Robert Banks. 
James Haven in full. 

30. 

Expense account To R. Banks 

13911.75 



Crs. 



Cash. Hdm. 



2 
6 



32022 25 9444 60 4765 5(1 



168 

72 



291 



3 496 50 



100 
1540 
4125 



6 137 



l65o 
113 



28 
1000 



1250 



150 



lis 



345 



13911.75 



30979 10 
11750 50 2 
11207 50 2 

53937 10 



Total Amounts to date, 36100 

;; Ip^^^ ^. "2 11530 60 

Merchandise 2 6306 50 

' P^OOf 53937 jy 



1. This indicates Sundry Creditors' account.— See Note 

1, last page, and p. 170. 

2. This makes our first Journal period. From here the 

total amounts of the cash and merchandise debits 
aud credits are posted into the Ledger.— See p. 166. 

3. Compare this amount with our Day Book footing, p. 

155, also with the trial sheet, p. 171. 



II 



•* 



i 



161 



CONCLUDING REMARKS UPON THE JOURNAL. 

1. The mode of journalizing the last Day Book, it is presumed, will be sufl&ciently under- 
stood by the examples. We shall now endeavor to explain verbally the manner of com- 
posing the Journal from the Auxiliaries, without passing the entries through the Day Booi, 
as we have here done. When the nature of the business will admit of this, it will consider- 
ably lessen the amount of writing. 

2. It is to be observed, however, that in a business which frequently creates compound 
entries, journalizing in this way will meet with many awkward impediments ; for instance, 
the first Day Book entry of this set. cannot be explicitly stated without embracing the first 
merchandise entry on the Invoice Book, and the first debit entry on the Cash Book. The 
only way of getting over this obstacle in journalizing the auxiliaries, is to let such entries 
pass into the Day Book and begin a new period — that is, commence immediately after these 
entries bringing forward and journalizing. We will now endeavor to explain the process of 

JOURNALIZING FROM THE AUXILIARIES. 

3. When this is done, the Day Book will contain a much smaller number of entries ; for, 
if you adopt this method of journalizing, you must keep the entries belonging to each auxi- 
liary upon itself. They must not appear upon the Day Book (except in such cases as above 
stated) ; if they do, they will certainly lead to confusion. 

4. Although it does not matter which book we journalize first, yet it is better to adopt 
some regular course : say we begin with the Day Book, and journalize all the entries under 
the present date. Then make Cash Dr. to Sundries for all entries on the Dr. side of the 
Cash Book, and Sundries Dr. to Cash for all entries on the Cr. side. Merchandise is Dr. 
to Sundries for all entries under the same date on the Invoice Book ; and Sundries Dr. to 
Merchandise for all entries on the Sales Book. Mark the entries oflf the Cash Book as 
directed Note 7, p. 53, and off" the Sales and Invoice Book, as directed for the Day Book, 
Note 7, p. 28. Bills Receivable, Bills Payable, and Commission Sales Book, are each jour- 
nalized in their turn in the same way, and marked off as directed with the Cash Book. 

5. You next take each book in the same order, and journalize the following day's busi- 
ness as before ; and so on, until you have all brought up ; observing that the footings of the 
Invoice, Sales and Cash Book, agree with their representatives in the Journal as you 
proceed. 

6. This process of journalizing does not disturb our mode of proof. The footing of the 
Auxiliaries, and that of the Day Book, have only to be added together to agree with the 
Journal. 

7. Some journalize a whole month of the Cash Book in one entry, and then do the same 
with the Sales Book, preserving the order of the dates in the margin of the Journal ; but 
this method produces such a confusion of dates in the Ledger, that it can never be recom- 
mended. 

We have now to explain the second mode of abbreviation, viz. : 

POSTING ALL THE PRIMARY BOOKS DIRECT TO THE LEDGER. 

8. When the nature of the business admits of it, this plan of posting efl'ects the greatest 
reduction in writing that perhaps can be made in Book-keeping. But it is subjected to the 
same impediments from compound entries, that we have just noticed. Note 2, and which can 
only be got over in the same way. We have already explained the manner of posting the 
Invoice and Sales Book, p. 139 and 142. When it is intended to post the Cash Book in 
this manner, a folio column will be required either next the money columns or next the 
date columns, in which you will insert the folio of the Ledger, as you proceed with the post- 
ing. The footings of these three books are summarily posted at the end of the month or 
the end of the quarter as from the Journal. 

9. The Bill Books and the Commission Sales Book, may be posted, both sides, by the 
same process ; but I would recommend their passing into the Day Book. 

10. The Day Book should have the entries all made in Journal form, when it is intended 
to post it in this way. I am now alluding to the common form of Day Book. 

11. Our proof is obtained by adding together the footings of the Cash, Invoice, Sales, iiud 
Day Book. The amount must agree with the amount of the Ledger trial, as on p, 171. 

162 



t 



ON MONTHLY JOURNALIZING. 

1. The object of this method is to condense, not only the cash and merchandise, but all 
the accounts in the Ledger, into one line each in the month. Many persons are stron-ly 
prejudiced in favor of this plan of journalizing, on account of the abridgment it makes^in 
the accounts in the Ledger : in some kinds of business it will no doubt work tolerably well ; 
but where the book-keeper is frequently called upon to make up statements of accounts, and 
to effect settlements, in a business of any magnitude, there must ever be this insuperable 
objection to it:— the books can never be kept up. You cannot commence the joumalizintr 
ot the month's business until the month has expired, and before you can journalize and post 
this month, a considerable part of the next must have elapsed j in a word, the nature of the 
process will never permit you to get your books up to the date of settlement. Even the 
strongest advocates of this method admit the force of this objection, and can offer no advan- 
tage to counterbalance it, but the abridgment of the accounts in the Ledger. I must, how- 
ever, name other objections to the process, viz. the chances of errors and omissions in jour- 
nalizing; the risk of making errors in drawing off accounts current, and making settlements 
without having your books posted ; the correctness of which can only be determined when 
the accounts are posted ; then, the time required in searching up the Day Book entries for 
the Journal, is certainly at least equal to the time required for writing them. Consequently, 
m less time than any person could possibly journalize a month's business in this way, by 
our plan of posting our first Day Book, we should have it all posted up into the Ledger. 
Ihe author once kept a set of books upon this plan; these remarks are, therefore, dictated 
by experience. 

2 Some directions will now be required on the 

DETECTION AND CORRECTION OF ERRORS. 

n ^l ^^^.*"^^ ?o®s ^0* ^g^ee with the footings of the Journal, compare the footings of your 
Cash Debits and Credits with those in that book : also, those of the Merchandise account ; 
then the Bill Books and the Bill accounts. Get a trial from the Commission Sales Book to 
compare with its representative in the Ledger, compare the footings of the Check Book 
with the Bank account; and if you have posted direct from the Invoice, Sales and Cash 
Book, these books must be compared with their representatives in the Ledger. If all these 
books and the Ledger agree, the error must be in some of the personal accounts or some 
account not represented by any of the above books, and must be, between the Journal and 
the Ledger, m the Ledger or in the trial itself. Taking the Day Book and Journal as the 
best authority, we ascertain the difference between them and the Ledger trial. Sometimes 
. we find one side agreeing with the Journal : in this case our attention is confined to one 
side ot the Ledger only. In all cases it is proper to know the amount of error ; for if there 
be but one, knowing the amount of it, sometimes readily leads to its discovery. When the 
error is found, if it cannot be corrected as directed, page 98, the correcting entry must 
originate upon the Day Book or some other primary Book. 

. ^' T^^T/^ ^^^^^ ^^^^^^ ^° *^® Journal by extending into the wrong column, if you have 
tooted and forwarded the amounts before discovering it, at your next footing add the amount 
to the colunan to which it belongs, and subtract it from that into which it w^ erroneously 
extended. — Read Note 2, p. 98. '' 

Errors in any of the primary books are corrected as. directed, Notes 10 and 11, page 98, 
and Note 2, p. 125. > i' a "> 

4. We will now endeavor to give our readers some useful directions 

IN RULING BOOKS OF ACCOUNTS. 

In ordering books, always provide the binder with an exact pattern of the size of paper 
and ruling. Never choose books of any kind that will keep you constantly cramped for 
space to write upon. Many persons use Day Books and Cash Books made of cap paper 

folded long, and are forever trying to cram their entries upon a line, very often leavin 
them half finished in the attempt. i^ 7 j 

In the next place, never throw away unnecessary space in maroins and date columns 

163 



i 



'O 



[i 



I 



Five-tenths of an inch is ample space for the month, and three-tenths for the date and cent 
columns. The width of the dollar column depends on the magnitude of the business ; but 
the figures in this column ought not to be crowded. Five-tenths of an inch is a good space 
for four figures, and six figures ought to have seven-tenths. Three-tenths faint ruling is a 
good size for common Day Books, Journals, &c. ; but Ledgers and the six-column Day Book 
or Journal may be somewhat narrower. 

Mechanics and retailers, proposing to post their Ledgers as suggested. Note 2, p. 129, will 
find it useful to have the debit writing space, ruled one-fourth or one-third wider than the 
credit space. In small Ledgers it is better to bind the index in the book ; in large ones it 
is more convenient to have it bound separate. In either case, direct the binder to " throw 
over" the first leaf of the index, and commence lettering on the third page. This enables 
the book-keeper to place the upper letter upon each leaf on the left page, and the lower one 
on the right, thus giving each letter a full page throughout the index. 

In the six-column Day Book or Journal, it will be well to have the dividing lines between 
the cash and sundries column, on both sides, black or some dark color ; it will also be useful 
to order a red footing line across the bottom of the page, the fourth line from the bottom. 

Before concluding this subject, I will take leave to oflfer a suggestion upon the con- 
struction of 

BOOK-CASES. 

In vaults and safes, the book-cases are almost universally constructed for setting all the 
books on end, leaving the whole weight of the paper, by this means, hanging and straining 
upon the binding, and not unfrequently breaking it. It will take no more space to contain 
the books upon horizontal fixtures than in perpendicular ones, and it is obvious that all 
large books are less liable to injury in the one position than the other. 



INDEX TO LEDGER B. 



Bills Receivable 
Bills Payable 
Banks, Robert . 
Butler, Robert 
Carter, Janies . 
Cash . 

Cope & Sons, T. I 
City Bank . 
Commission Sales 
Commission . 
Duff, P. . 
Day, James . 
Duff & Gordon 
Expense 
Evans, W. 
Freeman, Thomas 
Gordon, Wm. . 
Gaynor, Samuel 
Hay, William . 
Haven, James 
Interest . 



A. 


» 








3 
. 3 

5 
. 5 

1 
. 2 

2 
. 4 

5 
. 6 

1 
. . 3 

y .1' 

6 
. 6 

1 
. 1 

2 
. 6 

4 



Merchandise 



Pryor, Edward 
Profit & Loss 
Post, Joel 
Parker, Robert 

Reed, James . 
Stuart, A., & Co. 
Sundry Drs. 
Sundry Crs. 



J. 
K. 
L. 

N. 
0. 



Q. 



3 
4 
6 
6 



6.6 
. 2 

6 
. G 



T. 
U. 
V. 
W. 
X. 
\. 

z. 



164 



Pf. 

1867. I I 

Apr. 10 Cash, 

30 // 
May 1 Mdse. 

Cash, 
30 -^ ■ 



P. 



June 



nt. 



Balance. 



fol. 



1 
2 

3 

2 



30 

60 

37 

5 

421 



553 91 



DUFF. 

1867. I ! 

Apr. I 1 Cash, 

June 30 Duff & Gordon, 



fol. 



1 

5 



Cr. i 

500 
53 91 



553.M 

132. 

421.91 



553 91 



June|80 Balance bro't down, 



421 91 

Read Notes 2 and 3, p. 149. 

*' '^'"tr^H^f ?^ *'''° following accounts are the partners' private accounts; they are debited for all sums withdrawn and 
credited for any sums paid in over the capital. The credits of June 30 at this and Gordon's account are their diridendi 
01 aeots collected for the old firm. 



W. 



GORDON. 



1867. 

Apr. 30 Cash, 

May 1 Mdse. 

Cash, 

23 



2 
3 



11 



// 



101.50 
32.34 

69.16 



June 80 balance bro't down. 



I i 



25 ' 

2150 

10 

40 I 

5 ! 



. 1867. I ! 

June 30 Duff & Gordon, fol. 5 



32 34 



10150 



69 16 



-uaicuiuf. 



101 50 



JAMES 



CARTER. 



1887. 



Apr 1 J. Carter's Stock acct., 1 
SO Cash, 2 

May 1 Mdse., 



k 



988.75 
800. 

188.75 



Balance, 



ML 4 

fol. . 



400 
400 

988 75 



June 30 Balance bro't down. 

^' ^^"sttk accouVtrrnt.'"''"' '' ^^'""^ *^'' ^'^*""' ""'^ '^'^"'''* *° ^" '*P^**^ ^^"" *^« ^^'^'^ ^^^^ opened-Refer to hi* 

2. The two credits are payments on account of this deficiency. If interest is to be charged a Dav Book entrv will i«. m«H- r 

It, a nd It mil be brought to this account, not to his stock account. ^nargea, a i^ay iJook entry will be made «f 



SAMUEL 



GAYNOR 



1867 



Apr. 1 Amtf Ledger A, fol. 3x 91 



^0 Mdse 



May lO Balance on settlement, 



June 30 Balance bro't down. 



397 



488 



82 



1887. 



82 



62 



^pr. 10 Bills Keceivable, 

^ay 1 Mdse., 

J Cash, 8 

10 Balance debit in n/a., 



2x 91 

265 

50 

48S 



Jun 



31 Cash, 



c 



30 



Balance, 



20 

82 



Refer to Note 2, Warden & Bell's account, p. 105 

1. Wliere a settled account is comprised in a single line, iMs sufficient to mark the entries on each side a. above and omit them 

H. .n^'^'J account current. But the author has witnessed so much confusion and trouble in acJounJs frJS. iSr- tr« 

rir^n^i^VV^' *"'\V* settlement, that he again requests the student's attentio^to Note 1 wS" Tcomi p 

Ij. Note, p. 20, Notes o and 6, p. 23, Note 4, p. 70, and No te 1, Carter's account, p. 105. i. " ooa s account, p. 

165 



I, 



» 1ft. 



CASH. 



Cr. 



18W. ' ' 

June 30 Sundries to date, n^so^ 

1 U590.W 


5 


11750 50 
11750 pO 


1867. ' 

June 


1 
30 


Sundries to date, 
Balance, f. 


5 

2 


11530 
219 

11750 


60 

90 

50 


Jun 30 Balance bro't down. 


219 


— 1 
90 









MERCHANDISE 



ACCOUNT. 



1867. 



June 30 Sundries to date, 
Private Ledger, 



" I 'II 18OT. I f 

5 11207 50 June 30 Sundries to date, 
6306 50 Private Ledger, 

17514 ~ 




f. 



5 

2 



6306 50 
11207150 



1. Post the ne-w bnsiness to thia account as before. When closing the Ledger, transfer again with a double balance as above. 



T. P. 



(Philadelphia) 



COPE & SONS. 



1867 ' ' 

Apr. *10 ' Bills Payable, 
May 23 Sundries, 

31 City Bank, 
June 4 Sundries, 



2x 504 

3 579 

4 500 
1221 



2804 



1887. 



Apr. I 1' Sundries fLedg.A,f. Ix 504 
May 23 Mdse., 3 2300 



2804 



I. This account affords another illustration of what is alluded to in Note 1, Gajrnor's account, p. 165. In business this mark 
is made upon the doable red line, and bo rauall aa not to disfigure the account. 



WILLIAM 



(Boston) 



Apr. 10 Bills Payable, 
May 23 City Bank, 

31 // M 
June 4 Mdse., 

iSUj liiiiiince, 



M60. 



loi. 



2x 200 

3 2000 

4 200 
60 

402 



2 



40 
2862 40 



1887. 



fl 



Apr. 1 1 Sundries Ledg. A, f. 1 x 200 1 

10 Mdse., I 12494 40 

June 10 // S*^ 5 168 



402.40 



June 30 Balance bro't down. 



2862 40 



402 40 



STUART & CO. 



i88r. 
May 1 Bills Payable, 



201 



291 



1867. 

Apr. 10 Mdse., 
20 v 



1 

2 


' 216 
75 


291 





166 



Or. 



JAMES 



(75 Tenth Street) 



DAY. 



1887. 

Apr. 1 Cash, 

10 E. Pryor, 

May 1 Cash, 

10 New acct., 



May 23 Cash, 
June 4 « 
10 



// 




!' 1867. 

Apr. 1 Sundries, Ledg. A, f. 3 



Cr. 8 

68 



May 10 Old acct., 



68 



28 



28 



1. The last debit entry before, the first balance above, and the first credit after it, are in one Jounial entry, the first one posted 
before the account is balanced, and the last one after it.— Note 1, p. 159, and Note 1, p. 153. 



EDWARD 



(25 John Street) 



PRYOR. 



1867. 



Apr. 1 Amt. Ledg. A, 

10 Mdse., 

20 // 

May 31 Cash in Loan, 

June 10 Mdse.. 



June 30 Bal. bro't down, 



f. 



3 
1 
2 



446. 
284. 

I«t. 



2 
16 

45 
Sii 200 

5,. 183 

|j 446 
162 



1867. 

lApr. 10 James Day, 2 

I May 1 Mdse., 

June 4 City Bank, Loan of 

31st ult., 284. 4 X 200 



20 
64 



30 



Balancv 



446 



1. The above loan on May Slst, is passed through account as directed at Pryor'a acct., p. 133. 

___ BILLS RECEIVABLE. 



1867. 



Apr. 10 S. Gaynor, No. 1, 2 

20 Sundries, 
May 1 Mdse., 

R. Butler, 
June 4 Mdse., 



91 



2, 2 1000 



2502. K 
872. ^'j 

1630. 



June 30 Bro't down, No. 2, 

I i » f 5, 



284 50 



1867. 



May 13 City Bank, No. 1, 3 

•' c:.i ,„d dowij, li„ 

May 23 Cash, 3, 3 

496 50 June 10 Sundries 

630 



, 87S. 4, 5 



2502 

1000 
630 



91 

284 50 
496 50 

2502 



BILLS 



PAYABLE. 



1867. 

Apr. 20 Sundries, I 

// 
.Tune 4 City Bank, 995. 



1, 

I: 


2 

4 


200 
504 
291 


5j 




2216 

1 _ „,„ 



1867. 



|Apr. 10 W. Hay, 

Cope & Sons, 

May 1 Stuart & Co., 

June ' 4 Cope & Sons, 

20 Mdse., 



No. 1, 

2, 
3. 

4, 
5, 



2216. 
9»5. 

1221. 



2 


200 




504 


3 


291 


4 


221 


5 


1000 




2216 



June 30 Bro't down, No. 4, 

\ \ If It 5, 



221 
1000 



1 Referring our readers to the copious directions for the management of these accounts, pp. 33, 34, 52, 103, and 104, we have 
now only to explain the peculiarity in the mode of posting adopted above. The notes are all posted separately, accom- 
panied with their respective nimibers, and the counter-post, with its number, must be always kept upon the same line 
with the first entry, leaving blanks opposite all notes in hand in the Bills Receivable account, and opposite all unpaid 
notes in the Bills Payable account. 

2. In closing, the blanks must be all filled in red, and the same notes, with their numbers, recapitulated in new account. Thia 
method of posting these accounts will contribute much to theLr correctness, and, in some cases, renders the Bill Book 
unnecessary. 

167 



I 



I 



' 



V! 



4 Br. 



CITY 



BANK. 



Cr. 



1867. 

Apr. 1 Cash, 

30 // 
May 1 J. Carter, 

13 Bills Receivable, 



31 Bal. bro't down, 
I Cash, 

James Carter, 
June 4 E. Pryor, 

Cash," 
10 Bills Receivable, 

Cash, ' 
20 Mdse., - 




1867. 

Apr. 20 Bills Payable, 
May 23 Wm. Hay, 

'1 l^il-iifr^ to. r\ 'fi., 



2 
3 



3 
4 



4337 85 May 31 Sundries, 
450 June 1 4 Mdse., 

iBills Payable, 



7329.30 
3051.20 



427&10 



June 80 Bal. bro't down. 



400 
200 
100 
49195 
100 
1250 

7329 30 
4278 10 



Cope & Sons, 

30. i^;u:i;jcj, 



3051.20 



703 65 
2000 



7041 



700 
1060 20 

291 
1000 




7329 $0 



See Note 2, p. 157, and Note 1, Day's account, p. 167. 

Every house doing a business of any magnitude, should keep a Bank account. It simplifies and shortens the Cash account, 
and diminishes the trouble and chances of error iu making payments. 



PROFIT 



h, 



LOSS. 



1M7. 

May 31 Cash, 3 

June 30 Pr. & Loss, Pr. Ledg. f. 2 



20 
130 

160^ 



1867. ' 

June 20 Cash. 



5 150 
150~ 



1. This account is continued in this Ledger until the time of closing, when its balance is transfen-ed to the Profit k Loss in 
the Private Ledger. — See the above balance in Profit & Loss account, p. 174. 



EXPENSE 



ACCOUNT. 



Apr. 1 


Cash, 


1 


3 


May 1 


// 


3 


60 


June 30 


R. Banks, 


40& 5 


345 



1867. 



June 30 Private Ledger, f. 2 408 



408 



408 



INTEREST 



ACCOUNT, 



1867. f f! 1867. ' ' 

June 10 Bills Receivable, 6 4 55 Apr. 20 Bills Payable, 

30 Pr.&Loss Pr.Ledg. f. 2 72 10 i Bills Receivable, 

i June 4 Mdse., i«.» 

76 65 . I 



2 
4 



^5 

20 50 
55 80 

76 65 



1. This, and the Expense account, are both closed into the Profit k Loss account iu the Private Ledger, p. 174. 

163 



I 






Dr. 

1867. 

Apr. 30 Cash, 
June 4 w 

10 Sundries, 



COMMISSION SALES. 



Cr. 



I 



2 

4 

2765.50 5 



June ^0 Bal. bro't down, 



1867. 

25 50 Apr. 30 Cash, 
748 May 81 Robert Butler, 
1992 June 4 Mdse., 

Cash, 

i! 10 // 3866. 



6621 50 



2765 50 June 30 Bal. bro't down, 



2 


360 


( 


4 


576 






180 






1200 


V 


5 


1540 





6621 50 



3856 



See Notes 1 to 4, p. 143. . . a ■% -a %. 

1. This account represents all our commission business. All the accounts are kept and settled on the Commission Sales Book. 

2. We have closed this account by DmhU Balance, for the purpose of practically exemplifying that operation, though this 

mode of balancing -was not required here, or, indeed anywhere, except when transferring an account from one I,*Higer 
to another, which you wish to leave closed on the old book, and to re-open on the new one with the whole ai.iount of 
each side brought forward. You will perceive that the above operation will effect that purpose.— See Morri.s' Sales, 
p. 107. 



ROBERT 



(Clerk) 



BANKS. 



1867. 

Apr. 10 Cash, 
May 1 Mdse., 
Cash, 
31 // 
June 10 Mdse., 
20 Cash, 
30 .,..,.„.,... 



20 June 30 Expense acct., ^[^ 5 

6 50 
30 




26i.50 



80 50 



ROBERT 



(Albany) 



BUTLER. 



1867. i ' 

Apr. 10 Mdse., 



May 31 Sundries, 



vrm. \ i 
596 50 Apr. 10 Cash, 1 

May 1 Bills Receivable, 2 

596 50 i j 

^,,,J_jti I u 

577 50 June 10 Cash, 5 



577 50 



100 
496 50 

596 50 
100 

577 5m 



DUPP 



& 



GORDON. 



1867. ! 

June 30 



P. Duflf, 

jW. Gordon 



fol. 1 



1867. 

53 91 May 23 Cash, 
32 34 31 // 

I June 10 " 



86.25 



3 
5 



20 
25 
4125 



86 25 



86 25 



1. This account is credited for all collections made of Duff & Gordon's old debts, and if any thing is lost upon any of thf nr- 
counts from which they credited themselves in the new firm, this account will bo debited for the amount. Of the aK.ve 
collections they make a dividend in the same proportion as ttiey divided the gain wlun lii. y dosed their l>o.>ks.— St« 
Profit & Loss account, p. 134. 



169 






• Br. 



SUNDRY 



DEBTORS. 



Cr. 



1867. 

May 31 W. Evans, 
Jas. Reed, 
Joel Post, 

June 4 Robert Parker, 



4 


20 




182 




18 


J80. 
300. 


60 


80. 


280 


vn, 


20 


; 


60 



1867. 

o uuuoO 



T - > ■» 1 ■- 



4 Jas. Reed's acct., 4 

,| Cash of Joel Post, aoo. 

!|| ': .or, car. dow;. 



:'.0 
182 

18 

;<) 

280 




June 30 W. Evans, bro't down 
, R. Parker, ft 

i ' 

1 In every business there are frequently small sales and unsettled balances due from persons with whom wo expect to have 
no farther dealings. The simplest and easiest way to keep account of such transactions is under a Sundry Drs. head. 
Enter the name, sum, date, &c., as above, taking care to index each individual's name, as you perceive we have done— 

refer to the index, and see. , , , ^ i. , * -d 

2. When payment is made, it comes through the books as far as the Journal, as though the party had an open account. Jiy 
the index, the name is found on this account, post it like Joel Post's entry, 4th June, above, on the same line opposite the 
debit, and'it settles the transaction. ^ . j. . j , t.- *u * 

3 You must recollect, however, that you cannot make more than one debit and one credit to each individual. 11 tbe trans- 
actions exceed this, you must re-page the party's name in the index, and transfer, through the Day Book, the amount 
from this account to his private account, aa we have done above with J. Reed. 





SUNDRY 












CREDITORS. 




1867. - 

20 Cash paid J. Haven, 5 


28 


' 1867. 

June 10 
20 


DueT. Freeman, 6 ' 
It Jas. Haven, ^£; 

7a. 1 


72 

28 






1 


100 


1 


i 




100 









1 


1 

June 30 


Due T. Freeman, bro't 

down, 

1 


72 



1. This account is managed in all respects like the last one, except that the entnes first appear at the credit side. 

2. When a purchase is made of a party with whom you have not an account, and intend to pay it in a short time, let the trans- 

actions as those in the last account, come through the books as far as the Journal, in the usual way, then post the 
name, amount, Ac, to this account, recollecting to index the name. When payment is made, it must be always placed 
on the Dr. side, on the same line with the credit, as with Haven's entry above. . „ , , j. . ^r, 

3. These tw(. accounts close by filling up the vacant spaces in red, as above, recapitulating all the names and amounts in the 

new account. 



JAMES 



REED. 



1867. 

June 4 



Sundry Drs. acct 
Mdse., 



278. 
100. 



178. 



182 
96 _ 


1867. 

June 4 

30 


Cash, 


:ded Li-t. 


4 100 

f. :l 178 


278 








278 

11 " " — 


1 








• ll 



1 This account was first commenced under the Sundry Dks. head, but finding he was going to deal farther with us, we re- 
indexed his name, and opened a private account with him. This will frequently occur in business, but, as the name la 
already in the index, the trouble is trifling compared with the old-fashioned plan of keeping a petty Ledger for such 
accounts. 



COMMISSION 



1867. 

June 30 Profit & Loss, 



ACCOUNT. 



1867. 



f. 2 164 May 28 Cope & Sons, 

June 10 Commission Sales, i^ 

164 



3 
5 

1 ' 


1 
27 
137 

164 







170 



TEIAL SHEET, June 30, 1867 



P. Duff . 
W. Gordon 
James Carter 
S. Gay nor . 



// 



Cash . 

Merchandise . 
T. P. Cope & Sons 
Wm. Hay 
A. Stuart & Co. - 
James Day 



// 



Edward Pryor 
Bills Receivable . 
Bills Payable . 
City Bank . 

// . 
Profit & Loss 
Expense Account 
Interest Account 
Commission Sales 
Robert Banks 
Robert Butler 

// 
Duff & Gordon 
Sundry Debtors 
Sundry Creditors 
James Reed 
Commission . 
Private Ledger 



Drs. 



Ors. 



fol 1 



2 



1. By comparing these footings with those of the Day-Book and Journal, and finding 
them to ao-ree, we have direct and indisputable evidence that no omissions can have occurred 
either in journalizing or posting. Whereas the common Trial Balance affords no security 
against any errors but such as disturb its equilibrium. And it is well known that omissions 
deeply affecting the interest of the Merchant frequently take place between his Sales Book, 
or his Day-Book and his Journal, which the method we are now introducing affords the 
means, and the only means, of detecting with certainty. — Note 4, p. 142. 

2. There are so many obvious advantages in taking a monthly trial, that it is strongly 
recommended in business. On the next page, I have given a form, by which, when the 
titles are once written, the amounts only require to be afterwards inserted until the end of 
the year. 



171 



I 






AN IMPEOVED POEM 01 MONTHLY TBIAL SHEET POE 1867. 



Accounts. 


1 


Drs. April. Crs. 


DBS. Mat. Crs. 


DH8. Juhs. Cbs. 


P. Duff, 


90 





500 


42 
















W. Gordon, 




25 






76 


50 














James Carter, 




9781 


50' 




10 : 


25 


800 




• 








Samuel Gay nor, 




; 488 


91 


' 82 




417 












Cash, 


2 


' 7775 ' 


76 7727 60 


825 < 


50 


864 




' 3149 ! 


25 


2939 




Merchandise. 




! 6014 i 


30 2372 25 


2629 




1547 25 


2564 




2387 




T. P. Cope & Sons, 




504 


504 


1079 




2300 




1221 








Wm. Hay, 




200 




2694 40 


2200 








60 




168 




A. Stuart & Co. 








291 


291 
















James Day, 


3 


28 




68 


50 




28 




18 








Edward Pryor. 




63 




20 


200 




64 




183 




200 




Bills Receivable, 




1091 






1 781 




375 50 


630 




496 50 


Bills Payable, 




704 




704 






291 

7037 85 


291 




1221 

2351 iO 


City Bank, 


4 


6550 




703 65 


5678 35 


2141 95 


Expense Account, 




3 






60 


1 




345 


t 


! i 


Interest Account, 








20 85 


1 1 






4^5 


55 i 


to 


Commission Sales, 


6 


251 


50 360 , 


1 


1 


576 




2740 




2920 




Robert Banks, 




20 


1 1 


' 46 50 






198 




345 




R. Butler, 




596 i 


^0 100 


577 50 


496 50 , 






100 




Privale Ledger, 


1 




9000 


















April 


* 


25156 ' 


r5 25156 75 


















Profit & Loss, 


4 

1 








20 












150 




Duff & Gordon, 


5 






1 




45 








4125 


Sundry Debtors, 


6 






220 








60 




200 




Commission, 










27 




• 




137 




May .... 










14So8 60 ■ 


14868 ( 


50 










Sundry Creditors, 


6 










1 1 






1 28 




100 




James Reed, 


















< 


278 


r5i 


100 




June .... 


(3911 \ 

1 


3911 -3 


rs 



1. The above form of monthly trial will require medium or royal paper, ruled with six debit and credit columns on each page. 

This will enable the book-keeper to take his trial in about half the usual time, inasmuch as the titles once written ser^-e 
for the whole year. 

2. As our Journal is not posted in monthly periods, you cannot find the cash and merchandise amounts for the above trial from 

the Ledger, but you can procure them from the Sales, Invoice, and Cash Books; and I have given the monthly totals in 
small figures in the margin of the Journal, so that you can see when your trial agrees with that book. 

3. Before making out each month of this sheet, go over the Ledger, carefully adding up the month's business, inserting it in 

pencil in the margin of each account : from these marginal figures the trial is filled up. 

4. To facilitate this operation, the author originally had his Ledger ruled with two sets of money columns on each side, so that 

every account could have each mouth's business extended in monthly sections, like our Cash Book. But some of his 
mercantile friends expressing a strong dislike to this manner of ruling the Ledger, ho has been induced, in deference to 
their opinion, to abandon it, although his own opinion of its practical utility remains unchanged. 

b. Want of time is the greatest objection to the monthly trial, but it is believed, that if a proper estimate is made of the time 
usually required for correcting books at the end of the year, the advantage will often be in favor of the monthly trial, 
which gives timely notice of the existence of error, and but a short space of business to examine in order to find it. 

6. In conclusion we may also name another advantage of the monthly trial. When it always comes out correct, there is not 
any necessity of ever making out a Balance Account. Dividends can be safely made upon the Profit & Loss Account, 
after closing into it all accounts representing gain or loss. Indeed, this may be done in any case where there is satisfac- 
tory evidence of the entire correctness of the books ; but, as all experienced accountants know, in the ordinary mode of 
keeping books, the Balance Account affords the only satisfactory evidence of this. When a dividend is made, and a net 
capital exhibited in the Stock or Partners' Accounts, the Balance Account must at the same time be shown, as evidence 
of the existence of effects to represent that capital. 



172 



THE PRIVATE LEDGER. 



] . The object of this book having been explained, Note 4, p. 149, we have now only to 
observe, that, although it is, in business practice, always a separate book, it must be dealt 
with as though it formed part of the other Ledger. After the accounts are opened, no 
public business can require any reference to it. Indeed, no reference is ever required to it, 
except at the time of closing the books or taking the trial. The sum of its footings must 
appear upon the trial as you see on p. 171. At the time of closing, the transfers are all 
made from the public Ledger to Profit & Loss, Suspended List, and Balance, as if these 
accounts were opened in the same book. If the dividend is made without making out a 
balance account, as suggested in Note 6, p. 172, the course to be followed with the other 
accounts in this book will still be the same as it now is. 



Dr. 



P. 



(Stock Acct.) 



DUFF. 









Apr. 


1 








June 


30 













Sundries, Ledg. A, f. 1 
Cash, 8000. 1 

Profit & Loss. f. 2 



Cr. 1 

2884 47 

115 53 

1400 53 



Net Capital at date, 4400 53 



w. 



(Stock Acct^) 



GORDON. 



im. 

A|Mr. 1 Sundries, Ledg. A, f. 1 1717 58 

Cash, 3000. 1 1282 42 

June 30: Profit & Loss, f. 2 1400 53 

Net Capital at date, 4400 53 



JAMES 



(Stock Acct.) 



CARTER. 



J 



1867. 

Apr. 



June 



Sundries, Ledg. A, f 2 36 50 

Cash, 1 2000 

J. Carter's Pr. acct. sooo. 1 963 50 

30' Profit & Loss, f. 2 1400 54 

Net Capital at date, 4400 54 



1. We have, above, carried the whole amount of each partner's dividend to his credit in 
Stock account, but our attentive student no doubt recollects what we stated, Note 5. p. 129, 
and he will therefore readily understand, that the partners may order various other disposi- 
tions of their dividends; for instance, they may agree to carry a certain percentage on their 
capital to the credit of their private accounts to cover sums that they have withdrawn, and 
allow the remainder to pass to the credit of their Stock accounts to increase their capital. 
They may think proper to order the whole amount to the credit of their private accounts 
or draw the cash for it as soon as the amount is known, as in banks and joint stock com- 
|anies. 

173 



Dr. 



MDSE. 



ACCT. 



Cr. 



1867. : 1867 

June 30 From Public Ledg., f. 2 11207 50 June 30 From Public Ledg. f. 2 6306 50 
Profit & Loss, 2 4899. 1 1 i^iiiaiicu, 2 i 9800i 



2 4899 
16106 5(> 



Balance, 



9800 



16106 50 



1. The balance will always be brought down npon this Ledger. Every time the Ledger is balanced, the total postings to tint 
account on the Public Ledger are transferred by double balance as above. 



PROFIT 



& 



* LOSS. 



1867. 



June 30 Expense, Public L. f. 4 
Suspended List, 1063.50 2 
P. Duff, i n/g. 1 

W, Gordon, i // ^ 1 

J. Carter, i u ' 1 




1867. 

June 30 Pr, & Loss, Pub. L,, f. 4 
Merchandise, 
I Interest, 
Commission. 





L., f. 


4 


130 






2 


4899 






4 


72 


10 


5265.10 
1063.50 


6 

1 


164 




4201.60 






IM0.S8 




5265 


10 



See Notes 4 and 5, p. 130, and Note 1, p. 173. 

The above gain is carried to the partners' stock accounts. 



BALANCE 



ACCOUNT. 



1867. 


1867, 








June 30 W. Gordon, fol. 


1 69 16 June 30 


P. Duff, fol. 


1 


421 


91 


James Carter, 




. 188 75 , 1 


Wm. Hay, 


2 


402 


40 


Samuel Gaynor, 




62 


) 




Bills Payable, 


3 


1221 






! Cash, 


2 


219 90| 






Commission Sales, 


5 


3856 






j Mdse., 


9800 






R. Banks, 




80 


50 




1 Edward Pry or. 


3 162 






Sundry Crs., 


6 


72 






1 Bills Receivable, 


1630 1 






P. Duff, n. c, 


1 


4400 


53 




; City Bank, 


4 4278 lOi 






W. Gordon, n. c. 




4400 


53 






Commission Sales, 
Sundry Drs., 19255.41 


5 2765 50i 

6 80j 

19255 41; 


1 




James Carter, n. c. 




4400 


54 






19255 


41 








1 ; 















SUSPENDED 



ACCOUNTS. 



1867. 

June 30 Robert Butler, 
j James Reed, 



f. 



653.50 



I ! 

5 

6 


1 
477 
178 

655 


50' 
50 


; 1867. 

June 

I 


30 


Profit & Loss, 


fol. 


2 


655 


50 




655 


50 











See Notes 1 to 3 Suspended List, p. 134. 

We have only to remark further, that if these accounts have been closed, you will allow them to remain so, until you it'- 
ceive a payment upon them. When this takes place the account is to be re-opened with a debit for the suspended bal- 
ance: but this cannot be done upon the face of the Ledger. Profit & Loss having been debited for the amount at the 
last balance, mu.^t now be credited for it upon the Day Book, making the individual Dr. To Profit & Loss for balance per 
Suspended List. It may, perhaps, be asked, why not carry such payments to the credit of Profit & Loss, without re- 
opening these accounts ? This \sill not do, because these individuals' accounts must record the payments they have 
made upon them. 



174 



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175 



Hi 



I T 

I 



ON PARTNERSHIP SETTLEMENTS. 

DIRECTIONS FOR CONDUCTING THE BOOKS AFTER THE DISSOLUTION OF THE FIR3I, AND RECORDING THB 
TRANSACTIONS FOR EFFECTING THE SETTLEMENT AND FINAL CLOSURE OF THEM. 

"When a concern is dissolved, the books being generally left in the hands of one or more 
of the firm for the purpose of settling up, each of the partners should be provided with a 
Balance Sheet, similar to that on the preceding page. From this Balance Sheet each re- 
tiring partner makes the proper Journal entry in his own books. If the remaining partners 
continue the business in their own name, unless they have bought out the interest of the 
retired partners, they should make no use of any of its books to record transactions relating 
to their own business. 

To those who understand the preceding set of books, the following Exercises will fully 
explain the subject. The student should write out his own answers before he consults those 
in our Key. 

EXERCISES ON WINDING UP PARTNERSHIP BOOKS. 

1. On the 30th June, the day on which the preceding books were balanced, suppose thai 
Gordon and Carter retire from the firm, and leave the books in the hands of Duff for settle- 
ment : what entry will each retiring partner make in his own private books in conformity 
with the Balance Sheet of the late firm, supposing they had no previous entry in their private 
books of their investment in the firm ? 

2. What entry will Duff make in his books ? 

3. The Bank Deposit, Cash in hand, and Bills Receivable, being available property, what 
entry will Duff make of the same in his books on receipt of them ? 

4. What entry will he make for the same in the books of the firm ? 

5. What entry for the Merchandise in hand and debts due the firm ? 

6. What entry in his own books when he makes a payment of $1000 in cash to Gordon, 
one of the retired partners, on account of his Stock ? 

7. What entry for the same transaction in the books of the firm ? 

8. What will be Gordon's entry when he receives the money ? 

9. What will be Duff's entry, in his own books, when he sells Merchandise belonging to 
the firm for cash, $2000 ? 

10. What entry in the books of the firm for this sale ? • 

11. What entry in the firm's books if he sell James Carter, one of the retired partners, 
S3000 worth of Merchandise, on account of the balance due him by the firm ? 

12. What entry for this sale in Duff's private books ? 

13. What entry will Carter make in his books for the same ? 

14. What entry in his own books, when Duff collects cash due the firm j say the amount 
of S. Gaynor's account ? 

15. How will the same be entered in the books of the firm ? 

16. What entry in his own books when he pays, cash, a debt due by the firm ; say the 
balance due Robert Banks? 

17. What entry for the same in the books of the firm ? 

18. When the merchandise belonging to the firm is all disposed of, how is the account to 
be closed upon the books of the firm ? 

19. If any of the personal accounts due the firm are wholly or partially lost, what entry 
in the books of the firm at the final settlement ? 

20. When any of the suspended accounts, say Robert Butler's, is collected in cash, what 
entry in the books of the firm ? 

21. When the effects of the firm are all made available, how is the Profit & Loss account 
to be finally closed on their books ? 

22. How will the partners' accounts be finally closed on the books of the firm ? 

23. What entry will each partner make on his own books to close the account with the 
firm, after the effects are all paid over ? 

• 176 



PARTNEKSHIP SETTLEMENTS.— PAET 11. 



The foregoing exercises illustrate the course to be pursued when a firm is dissolved with 
a view to dividing the effects only as they are collected and made available. But it will 
always be found more convenient and advantageous for all parties, if the retiring partners 
agree upon a stipulated allowance for bad debts, expense of collecting, &c. In this ease, 
the books and all the effects of the firm become the property of the remaining partners, and 
they continue the business in the same books as before the dissolution ; at the same time 
becoming liable to the retired partners, in the terms agreed upon, for the balances they have 
accepted for their interest in the house. 

24. Suppose Gordon and Carter retire, and Duff takes the effects, books, and the whole busi- 

ness into his own hands, assuming all the liabilities of the firm, as also the balances 
due the retiring partners, less five per ct. oft' their last dividend, to cover bad debts, 
what entry will he make upon the books of this discount ? 

25. What entry will Carter and Gordon make upon their books to show the transaction ? 

After this, Duff debits them as he pays them off, in cash, merchandise, &c. ; they at the 
same time making conforming entries in their books. 

In the above exercises, we have made no allusion to the open consignment accounts. In 
every house doing a commission business there must always be a number of consignments 
on hand, partly sold at the time of closing the books. When a balance sheet is made up, 
either for the purpose of admitting a new partner, or settling with a retiring one, it is obvious 
that the commission upon these sales, as far as they are effected, must be taken into account; 
and to do so, the commission, so far earned, must be carried to the credit of the commission 
account. In doing so, some other account must be debited for the same amount : now, the 
question is, what is the proper account to debit ? It would be manifestly improper to debit 
the sales account without rendering the owner a statement, and it is by no means proper nor 
desirable to render him an account, unless he calls for it, until the sales are completed. 

The commission thus earned, being part of the effects of the parties who have thus far 
conducted the sales, their Balance account must be debited for it. To make Balance account 
Dr. to Commission, is a peculiar and somewhat anomalous entry; and it will, perhaps, be 
asked, what effects have we got to represent it? To this we reply, that the entry represents 
our claim against this person's sales ; and this claim is of the same nature as that against 
Ppyor, or any other individual. The only difference is, that we do not, just now, for the 
reasons above named, place the amount to the debit of the sales. 

Now, it must be recollected, that the Commission account closes Bi/ Balance and to Profit 
& Loss; ?nd, like all other balance-closing entries, this one must be brought down into new 
account ; and when the account afterwards receives its credit for the commission on the sales, 
when completed, the effect of this debit entry, so brought down, will be to extinguish its 
amount out of the credits of the account at the next dividend, thus preventing a new dividend 
of that portion of the commission accounted for in the old account. 

When dividends are made as we have suggested, note 6, p. 172, without making up a 
Balance account, then our Day Book entry will be. Commission new account. Dr. To old 
account After posting the credit entry, close the account into Profit & Loss ; and, after 
the closing lines are drawn, post the debit entry. 

It is to be observed that, in business, the entries we are now considering will often have 
to embrace the commission upon a large number of different accounts. A Day Book entry, 
specifying all the particulars, will, therefore, always be required in form something like the 
followinir : — 



Balance Account Dr. To Commission. 
For commission 5 per ct. on A. B.'s sales effected to date, 8500. 
/' f 2i // on C. D.'s // <r // 2000. 

'f It 5 // on E. F.'s // n ii 3400. 



^25. 
50. 
170. 8245. 



It may be proper to remark, that this adjustment of the commission due upon the sales 
thus far effected makes no change in the disposition of the balance of the account. The 
differences between the sales and the charges must appear in the balance sheet, as usual. 
M 177 






DUFF'S BOOK-KEEPING. 

I may also observe, that I am now treating the subject of Partnership Settlements for 
professional readers only; persons not well versed in the science of accounts will not, there- 
fore, find it intelligible until they make themselves acquainted with the principles of the art, 
as explained in the preceding part of this work. The experienced hook-keeper will, how- 
ever, no doubt, perceive that this mode of adjusting the commission effects all that is neces- 
sary for making and recording a dividend, without disturbing a figure in the consignment 
accounts — avoiding the awkward expedient of either making a partial charge of commission 
in the account, or rendering a statement of it, before the sales are completed. 

Such of our readers as understand the application of this principle to the Consignment 
accounts, will readily perceive that it may be, at any time, conveniently applied under similar 
circumstances, to the Interest or Profit & Loss account, or any of its branches. 

In consequence of the unexpected retiring of a partner, between the periods of annual or 
semi-annual settlement of the books, a balance sheet and settlement may require to be made 
with the retiring partner, when it would be extremely inconvenient and irregular to present 
your accounts to your mercantile neighbors and correspondents for settlement. In extensive 
houses, where interest is allowed and charged on book accounts, there will be many accounts 
upon which interest will be running, some in favor of the house, and some against it. We 
now propose to show by a short pro forma statement, with what ease and simplicity interest 
upon any number of accounts, notes, bonds, &c., may be adjusted in a partnership settlement 
without disturbing or disfiguring the accounts. It must be recollected, that such statements 
must be always made upon the Day Book, with full particulars for future reference, if 
required. The form will be something like the following : — 

Balance Dr. To Interest Account. 

For balance of interest due us on Cox & Martin's account to date, $68. 
» K on G. Haven's 

WW on Henry Noble's 

WW on John Manly's note 

Less balance of interest due G. W. Smith on account 
ir. » Martin Rowley on bond 

Balance to credit of interest . 280. 

This entry is posted to the Balance and Interest accounts, as directed with the Commission 
account last page. But no entry is now made at the accounts of any of the above parties for 
these amounts of interest. Their accounts are carried ou with )ut interruption until the next 
period of settlement, when they will have an entry for the interest for the whole period, as 
if no adjustment of this kind had now taken place between the partners; and though the 
interest account will then get credit for the whole amount computed upon the accounts, the 
balance entry, now brought down from the old account, will extinguish that amount of it, 
leaving only what will have accrued after the present settlement for a new dividend. 

Our attentive reader, no doubt, already perceives that this principle may be applied to any 
account which we do not wish to disturb at the time of settling or balancing the books. For 
instance : the 1st Co. Sales or Ship Pioscoe and owners, p. 109, may be dealt with in the 
same way, by making Balance Dr. to Profit & Loss for our share of the gain to date. Then 
Profit & Loss would re-open as before stated, and the ship's account would remai" undisturbed 
until the time of making the dividend. 



n 


122. 




u 


140. 




• 


. 60. 


390 


• • 


70. 




• 


. 40. 


110 



178 



»lii 



ON PARTNERSHIP SETTLEMENTS. 

ON KEEPING PARTNERSHIP BOOKS WITH A STOCK ACCOUNT. 



2. 




91. 




963.50 




■ • 


504. 


• • 


200. 


• • 


€8. 


• ■ 


500. 


• « 


9000. 



Though the author considers the manner of keeping Partnership Books exemplified in 
the preceding sets, the best adapted for general business in private co-partnership, yet in 
some large firms, particularly manufacturing establishments, where there are a number of 
silent partners, it will be found more convenient to place the whole capital at the credit of a 
stock account, as is done in Banks and other Joint-Stock Companies. In this case, the 
amount of capital invested by each partner is shown by receipts or other private docu- 
ments. All the partners' transactions with the concern are recorded precisely as they are 
at the partners' private accounts in the preceding Ledger; and the opening Journal entry 
will be the same in all the debits and credits, with the exception of the 33000 carried to the 
credit of each partner's stock account. This will appear in one sum ($9000) at the credit of 
the Stock Account; and no separate stock account will be opened for each partner. Take, 
for illustration, the first, second, and fourth entries of our Journal, p. 157, and embrace them 
in one entry, viz. : 

Sundries To Sundries . $10272. 

Cash §5998. 

Merchandise 3217.50 

E. Pryor 
S. G-aynor . 
James Carter . 

To T. P. Cope & Sons 
// William Hay 
// James Day 
// P. Duff 
// Stock 

Carrying the whole capital to the credit of the Stock account, as if it were an individ - 
business. 

As we have before remarked, the disposition of the Profits is altogether a matter of privut. 
agreement. If it be agreed to carry the whole profit to Stock, to increase the capital, tlu 
Profit & Loss will close thus — see p. 174. 

Profit & Loss To Stock for net gain 

If it be arranged that the profits are to be divided : 

Profit & Loss To Sundries . . $4201.60 

To P. Duff for his i net gain .... 
// W. Gordon n . , ... 
// J. Carter // ..... 

Or, if they agree to divide, say 10 per cent, upon their capital, and allow the surplus to 
increase the stock — 10 per cent, on $9000 is 900. 

Profit & Loss To Sundries . . $4201.60 

To P. Duff for his 10 per cent, dividend . . 300. 
// W. Gordon // . . 300. 

// J. Carter n . . 300. 

// Stock for surplus profits .... 3301.60 
At the time of dissolution, or any other time, if desired, the stock may be closed into the 
partners' accounts, thus : 

Stock To Sundries, to close account . $13201.60 

To P. Duff for his i capital .... 4400.53 

// W. Gordon u .... 4400.53 

II J. Carter n 4400.54 

The partners' accounts will then show what is due them by the firm, or what thev h:ivi' 
to refund, if any of them have overdrawn. 

179 



$4201.60 



1400.53 
1400.53 
1400.54 



il 



DUFF'S BOOK-KEEPING. 



ON PARTNERSHIP SETTLEMENTS. 



ON ADJUSTING INTEREST ON PARTNERS' ACCOUNTS. 

The author left the exemplification of this matter out of his Partnership Books, believing 
that he could give a more comprehensive explanation of it in a separate section, than upon 
a Day-Book. 

Many book-keepers cast interest upon each partner's capital, and, after deducting from 
this, interest on the sums withdrawn, carry the balance to each respective partner's credit, 
and to the debit of the Interest account. Although the results arising out of this disposition 
of the interest will all come out perfectly correct, yet it gives such a distorted appearance to 
the Interest account, that we think the following adjustment will be preferred by all good 
accountants. It will be observed that the interest is adjusted between the partners' accounts 
without disturbing the Interest account, which should embrace nothing but the interest of 
business transacted with the firm. 

Suppose Hay & Gordon, partners, to share equally in the gain or loss, and the interest 
upon Gordon's capital to be ....... 8240. 

Less interest on sums withdrawn . . . . . 80. Balance 160. 



Interest upon Hay's capital 
Less interest on sums withdrawn 



150. 
50. Balance 100. 



Balance of interest in favor of Gordon 



60. 



Here we cancel the SlOO interest due to Hay, and allow it to extinguish that amount out 
of the S160 due to Gordon. Then, by a little reflection, the reader will perceive, that if he 
credits Gordon for the remaining 860, and debits the Interest account, Gordon will himself 
have afterwards to pay, out of his share of the profits, one-half of this 860, and Hay the 
other half: then, if we make 

Hay Dr. To Gordon for half balance of Interest, 830. 

the result will be correct. It will leave both partners' accounts in the same position as if 
they had been credited for their respective balances of interest above stated. 

When there are more than two partners a difi"erent operation is required. The following 
rule will serve for any number : — 

Rule. — Add together the balances of interest due to each partner : divide the sum by 
the number of partners ; the quotient is the average, or amount, of interest that would be 
due to each partner, provided they were equally interested. Therefore, the balances above 
the average must be placed to the credit of their respective owners, and those below it 
must appear at the debit of their owners. The sum of the differences above, and that of 
the differences below, the average, will always equal each other, as will be seen by the 
following illustration : — 

Suppose the bal. of Interest due Duff 8650 — 394. Bal. for Duff's Cr. 256. 

394. // Gordon Cr. 96. Total Crs. 352. 



n 



Number of partners 
And 



Gordon 490 
Hay 250. 
Bank s 186. 

. 4 )1576 . 

394- 
394 - 



186. Bal. for Banks' Debit 208. 

250. // Hay's // 144. Total Drs. 352. 



The Journal entry will be, 

Sundries To Sundries 8352. 
Banks, for balance of interest on his capital 
Hay, for » // » . . 

To Duff, for balance of interest due him on his capital 
u Gordon, for // // // 

180 



8208. 
144. 



256. 
96. 



The principle just applied to the settlement of partners' interest, will often be found useful 
in arranging other matters in partnership settlements. We have known an expert account- 
ant not a little perplexed to settle a matter similar to the following. 

George Draper, William Stone, James Best, and Charles Hill, having lately dissolved their 
firm, sold off all their effects, divided the proceeds, and find their accounts standing as follows : — 

There is a balance due to Draper of $460, to Stone, 8270, to Best, 8184, to Hill, 8430. 
Their shares in the business were each one-fourth, their books were kept by Single Entry, 
and there are no farther effects to divide. Required the settlement of the matter between 
the partners. 

Balance due Draper is 
// Stone, is 

«r Best, is 

w Hill, is 

Number of partners, 
Each partner's loss. 

Now, it appears that the whole loss was 81344, which, when borne equally by the four 
partners, will leave a balance due to each of 8336, and those who have drawn out so far as 
to reduce their balances ftefow? this, must refund the difference to those whose balances ej:ceed 
this amount. It will be better understood in a Journal entry. 



. 8460- 
. 270. 

184. 

430- 


- 336 — 124. 
-336— 94. 


218 


4)1344 
336- 
336- 


- 270 — 66 
- 184 — 152. 


218 



Sundries To Sundries, 8218. 
George Draper, 

Charles Hill, . . . . 
To Wm. Stone, . 

J. Best, . . . . 



$124. 
94. 



// 



66. 
152. 



When the above sums are paid over by Stone & Best, and received by Draper & Hill, 
the above Journal Entry will be made, and when the amounts are posted, they will leave the 
balances due to each partner equal, viz. : 8336, the amount of each partner's loss. 

Before concluding the subject of partnership settlements it will be proper to direct the 
reader's attention to settlements upon investments of part of the joint capital of the firm, 
in which it is arranged that the profits or losses are to be divided in different proportions 
from those of their general business : for instance, suppose Hay, Wood & Banks, equal part- 
ners in business, purchase the Union Cotton Factory for $16000, paying one-fourth in cash, 
and giving the notes of the firm for the balance, 812000. Wood & Banks decline owning 
more than one-fourth each of the mill, whereupon Hay takes the other half It is agreed 
that the gain or loss by the factory shall be divided in these proportions. Required the 
Journal entry for opening the account. 



Sundries To Sundries. 
Hay, .... 
Wood, . 
Banks, 

To Bills Payable, 
// Cash, 



88000 
4000. 
4000. 



12000. 
4000. 



The receipts and expenditures of the mill will be kept under the head of, Union Mill and 
owners, and dividends made of the gain or loss, as with Ship Roscoe and owners, page 97. 
But the cost of purchase can be placed to no other accounts than those of the owners while 
they own it in proportions different from their business. 

181 



» 



DUFF'S BOOK-KEEPING. 



CONCLUDING RExMARKS UPON SET II. 

We have already demonstrated the advantai;es of this mode of arranging and conducting 
books. We have practically exemplified its efficacy in preventing error, and the facilities it 
aflfords for detecting it when it occurs. We have shown that no entry once made upon the 
Day Book, or any of the primary books, can afterwards be omitted, in its passage through 
the books, without detection. While the common Double Entry Trial Sheet proves nothing, 
but that Ledger agrees with itself; if what is posted into it is posted correctly the trial will 
say, all is right, no matter how much you may leave behind in the primary books. Our trial 
requires the Ledger to agree with all the other books, thereby affording a security against 
error, which we believe has never yet been introduced into practice. 

It will be proper to point out the advantage that will be derived from even a partial adop- 
tion of this method. Persons who do not choose to adopt and apply it to its full extent, may 
introduce a single book at a time, and keep it upon this principle in connection with the 
common Double Entry books, and derive all the advantages we have pointed out, as far as 
that book is concerned, without disturbing either their other books or their business. Take 
our Cash Book, for instance, p. 144,. and you will find nothing in it to prevent its being kept 
in connection with auy kind of books whatever. It admits of being balanced like any other 
Cash Book, at any time that it suits your convenience, the outer columns being always for- 
warded, unbroken by the balances, to correspond with their representatives in the Ledger, 
and as soon as an error gets into one book or the other, a disagreement between the amount 
of these columns is the immediate consequence. You see at once which side it is upon, and 
then have only to ascertain where this disagreement commences, and you find the error 
immediately. 

But with the old form of Cash Book, although you perceive by its disagreeing in balance, 
with that of the account in the Ledger, it affords not the slightest clue to where, or upon 
which side, the error exists. You have no means of finding it,^but by beginning at the time 
the account was last balanced on the Ledger, and comparing every entry on both sides. 

The same remarks apply to our Bill Books. The clearness and simplicity of these accounts, 
when conducted upon this method, must be apparent to all. We have spent days in correct- 
ing a Bill account, where the number of entries was not over one hundred, but where the 
notes on one side were frequently posted in collected amounts, and on the other, broken up 
and posted in partial payments, endorsed upon the notes. We have no fear of any book- 
keeper, who has had a task of this kind to perform, readily appreciating the value of our 
plan of keeping these books and accounts. 

Those who keep a Sales Book can derive the same advantages from it in connection with 
common books as we do. It will check the credit side of the merchandise account, and if 
they choose, they can post the merchandise from it, in accumulated amounts, as we have 
recommended, p. 142. The same remarks apply to the Invoice Book if properly kept. And 
tliere is nothing to prevent any one from footing and forwarding the amount of their Day 
Book to check the Journal. Our form of Check Book may be introduced in any business, 
with all the advantages we have pointed out in correcting the Bank account. In a word,' 
the introduction of our method requires no upsetting of the established principles of con- 
ducting accounts, in any establishment. It can be introduced by piecemeal— one book at a 
time until its practical working is fairly tested. 



182 



KEY, 



CONTAINING THE ANSWERS OF SUCH EXERCISES AS ARE NOT 

GIVEN IN THE PRECEDING WORK. 



Answers to the Questions for Examination on Balancing the Introductory Set 

Page 36. 

Ans. 1. — The Stock and Balance accounts show the net capital $2980. 
At the second balance it is . . . . 28500. 
2. — The Profit & Loss account shows a loss of . . 20. 
In the second balance, a gain of . . . 520. 
3. — My whole gain was $260.; my whole loss was $280. 

In the second balance, the whole gain was $673.75; the whole loss, S153.75. 
4. — I gained $170. on the first, and $600. on the second balance. 
5. — $1700. on the first, and (the balance brought down included) $4600. in the second 

balance. 
6. — $1870. in the first, and $2200. in the second balance. 
7. — None in the first balance; in the second, $3000. 
8.— $3080. in tlie first, and $7300. in the second balance. 
9. — $500. in the first, and $3000. in the second balance. 
10. — $300. in the first, and the same in the second balance. 
11. — The Cr. side of Balance account shows it to be $900. in the first, and $2800. in 

the second balance. 
12. — The Dr. side of Balance account shows the first $3880.; the second. 31,300. 
13.— The Cr. side of Stock shows it to be $3000. in the first, and $2980. in the second 

balance. 
14. — Solution given for first Balance, is $7l§|. 
15. — do, do. is 10 per cent. 



i 



I 



PROOF SHEET FOB, LEDGER B, June 30, 1867 



Stock . 

Merchandise 

Bills Receivable . 

William Hay . 

Bills Payable 

House in Broadway . 

Robert Morris 

Ship Hudson . 

Profit & Loss 

Shipment to Liverpool 

J. Taylor & Co. . 

Commission 

Estate A. Lenox . 

House in Cedar Street 

City Bank Stock . 

C. Lenox . 

R. Lenox 

Cash 

C. Hartwell . 



DBS. 



CK9. 



f. 1 

3 

4 

5 
6 

7 
8 

10 



12 



ll 



183 



DUFF^S BOOK-KEEPING. 



ANSWERS TO THE EXzVMINATION ON PAGE 36, 

Applied to closing the principal Ledger, referred to at the Balance 

Account, p. 118. 

Ans- 1. — Stock and Balance show it to be 861,544.50. 

2. — Profit & Loss account shows it to be $28,044.50. 

3.— Total gains. 831.599.30. Total expenses and losses, 83554.80. 

4.— I gained 813,743.12. 

5. — Total purchases were 850,830.10. 

6.— Total sales, 846,445. 

7. — Amount on hand, per Inventory, is 818,128 22. 

8. — Cash account shows it to be 88891. 

9. — Bills Receivable account shows it to be 88680. 
10. — Bills Payable account shows it to be 86927.22. 
11. — The Balance account shows it 846,750.34. 
12.— The Balance shows it 8108,294.84. 
13.— The Stock shows it 831,300. 
14. — Allowing 156 business days between the 1st January and 30th June, — 



the average daily sales would be 
15. — The total purchases were . 
The amount on hand is 



8297.72 



50,830.10 
18.128.22 



Leaving the cost of the part sold . . . 832,701.88 

Then, 32,701.88 : 13,743.12 : : 100 : 42 per cent, average gain, nearly. 

The teacher should now require the learner to give, upon a slate or sheet of paper, the 
opening Journal entry of the contents of this Ledger, supposing it was required to transfer 
the same to a new set of books. It would be : 



Sundries To Stock . 








, 


• • • 


8108,294.84 


Merchandise . 






fol. 


1 


818,128.22 




Bills Receivable 






// 


3 


8.680. 




House in Broadway 






// 


4 


15.000. 




R. Morris 






// 


5 


5.676.59 




Ship Hudson . 






// 


6 


16.000. 




Shipment to Liverpool 






// 


7 


8.000. 




John Taylor & Co. 






. w 


8 


1.745.28 




House 49 Cedar Street 






■ II 


10 


12,000. 




City Bank Stock . 






. II 


It 


10,000. 




Charlotte Lenox 






. II 


II 


500. 




Robert Lenox 






. It 


II 


800. 


• 


Cash 






It 


12 


8,891. 




C. Hartwell . 






II 


II 


2,863.75 




Stock To Sundries . 


. 






• 


846,750.34 




To William Hay . 






fol. 


3 


• • 


810,813.12 


// Bills Payable . 






// 


4 


• • 


6.927.22 


'/ Estate of A. Lenox 






. // 


10 


• 


29,010. 



\\Ia 



He should also be directed to make the same entry upon the principle explained in Note 
1, p. 70, viz. — 

Sundries To Sundries, 8108,294.84. 

Inserting the debits of the Balance account for one side of the entry, and the credits for 
the other side. This form of the opening entry of books makes only one entry for the 
Stock account — the net capital, and is to be preferred to the common method of making 
two entries. 

184 



1. 

2. 

3. 



5. 

6. 

7. 

8. 

9. 
10. 
11. 
12. 
13. 
14. 
15. 
16. 
17. 
18. 
19. 
20. 

21. 
22. 

23. 

24. 



25 



KEY. 



ANSWERS TO THE EXERCISES ON PAGE 176. 

Duff, Gordon & Co., the late firm, Dr. to stock for the balance due tliem on the 

firm's books. 
The same f>j6 the other partners. 
Sundries, Dr. to Duff, Gordon & Co. 
Cash, for the money in hand. 
City Bank, for balance transferred. 
Bills Receivable, for amount of Notes in hand. 
Duff, Dr. to Sundries. 

To City Bank, to close account. 
// Cash, do. do. 

// Bills Receivable, do. 

No entry until converted into available funds. 
Duff, Gordon & Co., Dr. to Cash 81000. 
Gordon, Dr. to Duff . . . 1000. 
Cash, Dr. to the late firm . . 1000. 
Cash, Dr. to Duff, Gordon & Co. 2000. 
Duff, Dr. to Merchandise . . 2000. 
Carter, Dr. to Merchandise . 3000. 

No entry, he having given the firm no credit for the Merchandise. 
Merchandise, Dr. to Duff, Gordon & Co. 83000. 
Cash, Dr. to Duff, Gordon & Co. . . 62. 

Duff, Dr. to S. Gaynor, to close account . 62. 
The firm, Dr. to Cash, paid R. Banks in full 80.50 
Banks, Dr. to Duff, to close account . . 80.50 
The same as if the firm still existed. To or By Profit & Loss. 
Profit & Loss, Dr. to the individual, for the amount lost. 
Re-open the account as directed, Suspended List, p. 174; then. Duff, Dr. to Butler, 

for the amount received. 
In the usual way, To or By the partners' accounts. 
When Duff pays over each partner the balance due him, it will close both their 

accounts and his. 
They will close their accounts To or By Profit & Loss. 

Sundries, Dr. to Profit & Loss 140.05. 

J. Carter, for 5 f cent, discount on 81400.53 870.02 
W.Gordon, do. do. ... 70.03 

Duff, Dr. to Stock, for balance due on account, less discount allowed. 



Remark. — By a careful comparison of the abovo answers with the questions, p. 176, and 
the amounts in the balance sheet, it will be seen, that although the firm no longer exists, 
each partner must keep his account with it, and it keeps account with them until finally 
settled up. The books of an old firm must record the whole settlement of its affairs, as 
completely as if it still existed. 

The retiring partners can never debit the remaining ones for their claim against the firm. 
The remaining partners are not accountable any faster than the effects are converted into 
available funds. To carry such entries into private account would inevitably lead to the 
greatest confusion. 

It is at all times advisable, where the amount can be agreed upon, for the parties to agree 
to an allowance for bad debts, &c., and one party to sell out, and the other to buy, :is exem- 
plified in questions 24 and 25. The business then goes on without interruption. 

When this arrangement cannot be effected, the new firm has no other course to follow, 
than that laid down upon page 176. And if it has dealings on its own account with the 
retired partners, the greatest care must be taken to distinguish between payment* made ou 
private account, and on account of the late firm, otherwise the accounts of the new and old 
firm may become involved in inextricable confusion. 

185 



DUFF'S BOOK-KEEPING. 



MANUFACTURERS' FORMS. 



TIME AND WAGES REGISTER OF THE PITTSBURGH NOVELTY WORKS. 



1867. 


Jauvabt 1. 




JAN0ART 8. 


Name. 


Quantity. 


Bate. 


Amount. 

24 


Quantity. Rate. Amount. 


Patrick Birch 


6 doz. Locks. 


I i 

t 


John Brown 


5j // // 


5. 


27 50 




Robert Hammer 


4 // » 


6. 


24 i 


1 


Levi Wall ! 


31 // t 


7. 


24 50 


i ' 




Joel Black 


2i // '/ 8. 


20 






Wm. End ; 


I 15 'f Latches. 1.50 


22 50 


1 




Charles Dunn 


12 If If 1.75 


21 




1 


Toseph Castle 


10 // // 2. 


20 






John Cross 


25 " Hooks. .50 


12 50 






George McCoy 


30 // // .40 


12 






Forward 


t ! • 


208 


1 

1 1 



' The above form is designed for paying the men by the piece, in weekly payments. We 
have extended the first week's wages upon the first page. In business, the above $208 is 
brought forward into the head of the " amount" column upon the next page, and so con- 
tinued from page to page until the whole list of workmen (often several hundred) is com- 
plete. On pay-day the whole list is extended as above. The men assembled, the pay-clerk 
calls the names in their order upon the Register, hands each the amount due him, and 
checks it upon the left money column, thus |/. 

From the foot of the last page of the Register, the weekly amount total is transferred 
and marked " entered Cash Book." 

This book should be made of paper large enough to contain four weeks' business. It 
will save writing to continue the ruling over two pages. The names will not then have to 
be re-written until the weekly spaces are all filled. If a workman is discharged, it is noted 
opposite his name, and his remaining weekly spaces remain blank. 



186 



DUFFS BOOK-KEEPING.— MANUFACTURERS' FORMS. 



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1-3 H-s^ 



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187 



FORM OF A RECEIVING AND 

KECEIVED. 



Date. 



Marks and Articles. 



1M7. 
Jan. 

i 

1 


2 


Feb. 

Mar. 

Apr. 


10 

1 

10 

20 

1 




10 

1 \ 



C. D. 14 Bales 



Received from. 



Penna. R. R. 



Consigned to. 



Weights. 



Charges 
paid. 



t 



C. Day, Cincinnati 



700, 70 
460, 970 
1 466, 671 
I 221, 970 
I 447, 100 
I 801, 1200 
! 740, 1427 



369! 72 



W.Wade, 170 B. Flour 
R. 0., 2 Hhds. 
W.&Co.lOHhds.Hama 
B. & Co., 200 B. Flour 
J. P. 9 Bales 



P.P. W.&C.R.R. 

S. B. Velocity 
S. B. Dart 
S. B. Peru 
Penna. R. R. 



10 W. H.300B. Oil 



; S. B. Diadem 



W. Wade, N. Y. 
R. Owens, Ph'ilada. 
Webb & Co., N. Y. 
Beck & Co., N. Y. 
J. Pope, :"t. Louis, Mo. 



9248 



Pike & Co., Baltimore 



400, 
300, 
660, 
430, 
210, 



740 
860 
610 
920 



6130. 



86 



60 

102 



FORWARDING REGISTER. 

FOEWARDED. 



Date. 



1867. 

Jan. 



60 



75 



The above form will be found suitable to almost all kinds of Receiving and Forwarding 
business. It will be seen that the column for " weights" is left blank when the freight is 
charged by the package ; and the money column, "charges paid," is only used when we have 
to pay charges to the carrier from whom we receive the articles. 

The amounts of commission and charges are entered in the Cash Book and Journal, out 
of the column " commission and charges," when the amount is marked off thus,|/. Some- 
times we collect both commission and charges of the conveyance by which we forward, insert- 
ing the amount in their bill of lading, to collect of the consignee when they deliver the 
freight. If we have an account with the consignee, we can debit his account for the amount. 
Suppose this to be the case with the first entry above, our Journal entry will be 



C. Day, Dr. to Sundries .... 

To Cash, paid charges to Penna. R. R. on 14 bales 
// Commission, forwarding same p. S. B. Herald 



188 



8415.94 



369.72 
46.22. 



Feb. 
Mar. 
Apr. 



15 
16 
20 
21 
4 



Conveyance. 



Articles and Weights. 



Consigned to. 



Comm. 



Comm. k 
Charges. 



Steamer Herald 14 Bales 9243 cwt. C. Day, Cincinnati 



46 22 415 94 



Penna. R. R. 
// H 

u It 

n n 

S. B. Dart 



11 



170 Bbls. Flour 
2 Hhds. Tobacco 
10 Hhds. Hams 

200 B. Flour 
9 Bales 



W. Wade, New York 
R. Owens, Philada. 
Webb & Co., N. York 
Beck & Co., N. York 
J. Pope, St. Louis 



8 50 93 50 

2 2 

10 i l! 10 

10 60 

25 65 128 25 



Penna. R. R. 



300 Bbls. Crude Oil 



Pike & Co., Baltimore 30 



105 



Or, if our arrangements require us to charge the boat or company by which we forward, 
take the second entry : 

Penna. R. R. Co , Dr. to Sundries .... $93.50 
To Cash paid P. F. W. & C. R. R. on 170 Bbls. Flour 85. 

// Commission, forwarding same .... 8.50. 

If we collect of the conveyance, we debit cash for the amounts so collected. Credits 

as above. 

In extensive business, this book must be paged and the consignees' names indexed. The 
index will be of the common form, and lettered in the beginning of the book. 



189 



DUFF'S BOOK-KEEPING. 

RATES OF STORAGE • 

ALLOWED BY THE CHAMBER OF COMMERCE OF PHILADELPHIA WHEN NO SPECIAL 
AGREEMENT IS MADE, OR NOTIFICATION GIVEN.— CHARGEABLE PER MONTH. 



Almonds, per bale 

Ashes, per bbl. 

Bale Rope, per 100 lbs 

Barilla, per ton 

Bark, Quercitron, per hlid. . 

Bottles, per gross . 

Burr Stones 

Butter, per keg 

Candles, per box 25 lbs 

// Sperm, per box 
Cassia, per box 

// per 100 lb mats 
Champagne, in baskets, per doz. 
Cheese, per 100 lbs . . . 
Coal, in shed or yard, i per bushel. 
Cocoa, per 100 lbs . 
Codfish, per drum 

// loose, per 100 lbs 
Coffee, per hhd. . . . . 

// in 100 lb basrs 
Copper sheathing, per case . 

// rods,perl001bs 

Cordage, per 100 lbs 
Corks, per bale . . . . 
Cotton, per square bale 

II per round bale 
Duck, per pack, 2 bolts 
Dyewoods, Braziletto and Nica- 



Ground I Cellus 
Floor or lofts. 
Cents. I Cents. 



10 

7 

2 
30 
30 

8 

li 



8 
6 

1* 
25 
25 

6 

I 



f h 



1 
5 

12J 

1^ 
2 



12^ 
20 

1* 

12* 
12* 

2 
12 
12i 
15 

1* 



ragua, per ton 



/; 



50 
25 
20 



other kinds, per ton 
Earthen and glass ware, per hhd. 
Figs, per drum 
Fish, per barrel . 
Flax, per 100 lbs . . . 
Flax seed, per tierce 
Flour, and other clean barrels . 
Ginger, per 100 lbs 
Grain and seed, in bulk, per bushel 
Hams, per hhd. . 
Hay, per bale .... 
Hemp, loose, per ton 

// in bales, per 100 lbs 
Hides, each 
Hoops, in yard or wharf, 15 c. per 1000 
Hops, per bale . . .10 

Horns, per 1000 . . . .50 
Indigo, per seroon ... 6 
per case, . . . .12 



JL 
4 

5 

2* 

9 

3 

2i 

3. 

4 

15 

12* 

75 

2 

1 



n 



3 
4 

4 
10 

u 

IJ 

l2^ 

10 

1 
15 

1 
10 
10 

1* 
10 
10 
12 

1 

37* 

1:10 

15 

I 
4 
2 
7 
2 
2 

11 
10 

62^ 

f 

8 
37* 

5 
10 



Iron, bloom, or pigs, per 1000 lbs 

// bars .... 

// hollow ware 
Lard, per keg .... 
Lead, in pigs, per 1000 lbs 

// in sheets, 

// in oil or dry 
Leather, per side 
Lemons, per box 



Oronnd 

Floor. 

Cents. 

8 

10 
20 

1* 

. 7 

10 

15 



^f 



2 



Lumber, in yard, per 1000 feet 12* c. 
Madder, per hhd. ... 25 
Molasses, per hhd. . . .25 
// per tierce . . .18 
// per barrel . . .6 
Nails, per 1000 lbs . . .15 
Naval stores, per barrel . . 6 
Oil in casks, per 100 gallons . 20 
Oil in baskets, per dozen . . f 

Pepper and Pimento, per 100 lbs 1* 
Plaster, not under cover, 10 c.pr ton. 
Provisions, per bbl. . . .6 
Quicksilver, per flask . . IJ 
Raisins, per keg . . . .1^ 
// per box ... * 

Rice, per tierce . . . .12 
Salt, per bushel ... f 

Saltpetre, per bag . . .1^ 

Segars, per 1000 ... 1 
Steel, per 1000 lbs . . .10 
Staves, io yard or wharf. 

for pipes, per 1000, 25 c. 

Sugar, per hhd 25 

Sugar, per bbl. ... 5 

// per box, under 500 lbs . 6 
II other packages 100 lbs . 1^ 
Tea, per chest . . . .4 
Tin, block, per 1000 lbs . . 10. 
// sheet, per box ... 5 
Tobacco, Ohio & Maryland, p. hhd. 25 
// other kinds . . 30 

// manufactured, per keg 3 

// per seroon . . .4 
Wines and Liquors, per cask of 

// 130 to 150 gallons . 30 
// less than 130 gallons . . 25 
// not over 63 // . 12 ^ 

// not over 35 k . .6 

// not over 20 # .5 

// per dozen bottles . . 1 



CcUarf 
or lofts. 
CsifTa. 

6 

8 
15 

1 

5 

8 
11 
I 

20 
20 
14 

5 
10 

4 
15 



4 
1 
1 

I 
10 

i 

u 
1 

8 



20 
4 

4^ 

U 
3 

8 

I 
20 
22 

2 

3 

25 
20 
10 

5 

4 

.1 



All nuTchandise taken on storage pays for one month, and it is chargeable with another month if it remains one day after 
this time. The owners of the goods pay all charges for storing, tiering reasonably high, and for delivering. 

190 



DUFF'S BOOK-KEEPING. 



RATES OF COMMISSION 

ESTABLISHED BY 'IRE CHAMBER OF COMMERCE OF THE CITY OF PHILADELPHIA, 

WHEN NO SPECIAL AGREEMENT EXISTS, 

ON INLAND AND FOREIGN BUSINESS. 



PKR CT. 



Merchandise, for selling, on the total 

amount (Foreign) . . • -5 
// (Domestic) . • • - ^l 

for purcbasing and shipping, or accept- 
ing bills for purchases, on cost and 
charges . . . • • 2| 

for receiving and forwarding,ow the value J 

on responsibilities incurred for same . 2^ 
Vessels, for purchasing or selling, 07? 

the gross amount . . . • 2\ 

for chartering to proceed to another port 
or for procuring freight . . 2| 

for collecting freight or general ave- 
rage, on the amount collected . .2^ 

paying for repairs, outfits, or disburse- 
ments, 071 the total amount . . 2i 
Marine Insurance, for effecting, when 
the premium does not exceed 10 "^ 
ct., on the amount covered . . h 

if the premium exceed 10 "^ ct, on the 
amount of premium . ... 5 

settling and collecting losses without 
litigation, on the amount collected . 
Fire Insurance, for effecting, on the 
amount of premium . . .5 

for adjusting and collecti;;g losses, on 
the amount collected . . .1 



PEK CT 






Inland and Foreign Bills of Ex- 
change, endorsing or drawing and 
negotiating, in every case, on the pro- 
ceeds . . . . • • 2i 
for purchasing without endorsing, on 

cost and charges . . • • f 

for selling, on the net proceeds . . i 
for collecting, on the amount collected i 
for paying over, on the amount paid . \ 
for remitting, on the amount remitted \ 
Specie and Bank Notes, Drafts and 
Public Stocks, for selling, on the 
proceeds . . . • -2 

for purchasing, on cost and charges . i 
Public Stock, for collecting dividends, 
on the amount collected . . i 

Advancing money, or for accepting 
bills, in all cases on the amount ad- 
vanced or accepted . . . 2i 
Collecting claims on insolvent estates 
or litigated or disputed accounts, on 
the amount recovered . . .5 
Receiving and Paying all moneys from 
which no other commission is rec'd 1 
Receiving '/ .... I 
Paying '/ . . . . ^ 
Guarantee, in every case . . -21 



All consignments of merchandise withdrawn or re-shipped are subject to full commission 
to the extent of all advances and responsibilities incurred, and to half commission on the 
current value of remainder. 

For selling merchandise previously consigned to another house, but withdrawn from them, 
when no responsibilities are incurred, only half commission is to be charged upon the cur- 
rent value, such value to be determined in all cases by the certificates of two competent 
merchants or brokers. 

Bills remitted for collection under protest for non-acceptance or non-payment are subject 
to half commission only. 

The above commissions are exclusive of storage, brokerage, guarantee, and all other ex- 
penses incurred. 

Unless he order Insurance, the risk of loss by fire, robbery, and all other unavoidable 
risk, is with the owner of the consignment, ordinary care being taken by the consignee to 
secure it. 



191 



< 



I 



/ 



DUFF'S BOOK-KEEPING. 

RATES OF COMMISSION 

ESTABLISHED BY THE CHAMBER OF COMMERCE OF THE CITY OF NEW YORK, 

WHEN NO SPECIAL AGREEMENT EXISTS TO THE CONTRARY. 

\_ExtTacted from the Minutes, Vol. II., pp. SO and 30. '\ 



FOR INLAND BUSINESS. 



PER CT. 



Merchandise, for buying, selling, ship- 
ping, or accepting for purchases 
without funds in hand to cover the 



2J 
1 



* 



h 



same ..*••• 
Stocks, for buying or selling 
Specie, i> h . . 

Bills of Exchange, selling without en- 
dorsement ..... 

Bank Notes, or Drafts, uncurrent, for 
selling ..... 

Bills of ExcHANGE,endorsing and selling 2^ 

Vessels, purchasing or selling . . 2^ 

chartering, to take in cargo at other 

ports ...... 

procuring freight .... 

collecting freight .... 

outfits, repairs, and disbursements 
collecting general average 



2* 
2i^ 

2* 
2* 
2i 



on 



Kemittances in Bills, in every case 
Receiving and forwarding goods, 

the value of the same 
when the same is entered for duty or 

debenture ..... 
Collecting dividends on stocks . 
Collecting Bills, and paying over the 

amount ..... 

Receiving and Paying money upon 

which no other commission has been 

received ..... 
Collecting and Settling Insurance 

losses ....... 

Marine Insurance, for effecting, in every 

case' where the premium does not 

exceed 10 "^ ct., on the amt. covered 
when the premium exceeds 10 "^ cent., 

on the amount of premium 



PER CT. 



^ 



i 



2i 



FOR FOREIGN BUSINESS. 



PER CT. 



Merchandise, for selling 

for buying and shipping with funds in 
hand, on the total amount of cost and 
charges . . . . . 2J 

Stocks, for purchasing or selling . . 1 
Specie, '/ w . . § 

Bills, Drawing or Endorsing, in every 
case . . . . . .2^ 

Vessels, purchasing or selling . . 2J 
for procuring freight . . .5 

collecting freight on general average 2\ 
repairs, outfits, or disbursements, with 
funds in hand . . . . 2i 

Marine lNSURANCE,for efiecting, in every 
case where the premium does not 
exceed 10 "^ cent., on the amount 
covered .....* 



PER CT. 



Marine lNSURANCE,for efiecting, in every 
case where the premium exceeds 10 
"^ cent., on the amount of livemmm 5 

Dividends on Stock, for collecting . \ 

Litigated or delayed accounts, col- 
lecting . . . . . .5 

Insurance Losses, adjusting and col- 
lecting . . . . . . 2J 

Receiving and paying money upon 
which no other comm. is charged . 1 

Remittances in Bills, in every case . \ 

Landing and re-shipping Merchandise 
from vessels in distress, on the value 2J 

Receiving and forwarding Merchan- 
dise entered at the Custom-House, on 
the value . . . . .1 
on all responsibilities incurred for the 
same ..... 2^ 



The above comnjissions are without guarantee of debts for sales on time, brokerage, 
storage, and all other charges incurred. In the absence of instructions for insurance, the 
risk of loss by fire is always borne by the proprietor, as also the risk of loss by theft, rob- 
bery, or any other unavoidable accident, provided ordinary care be taken for the security of 
the property. Bills remitted for collection and returned under protest for non-acceptance, 
or non-payment, are subject to the same commission as when duly honored. All consign- 
ments of merchandise withdrawn or re-shipped are subject to full commission, to the extent 
of the advances or responsibilities incurred, and to half commission on the balance of value. 

192 



DUFF'S BOOK-KEEPING. 



RATES OF STORAGE 



chargeable monthly, established by the chamber of commerce of the 

CITY OF new YORK, WHEN NO PRIVATE AGREEMENT EXISTS. 

{Extracted from the Minutes, Vol. II., p. 31 to 34,'] 

CENTS. 



Almonds in packages, per cwt. . . 6 
Alum in bags or casks, per ton . . 40 
Ashes, pot or pearl, per bbl. . . 8 
Beef do. . . .6 

Bottles, quart, in crates or hampers, per 
gross . . . . . .8 

Bark, Quercitron, in casks, per ton . 60 
Bagging, in bales or loose, per piece . 3 
Butter, in firkins of 60 K), per firkin . 2 
Cocoa, in bags or casks, per cwt. . 2^ 

Chocolate, in 50 lb boxes, per box . 2 
Candles, in 50 to 60 lb boxes, per box 2 
Coffee, in casks, per cwt. . . .2^ 

do. in bags, per cwt. . . -2 
Copperas, in casks, per ton . 40 

Copper, in pigs, do. . . 20 

do. in sheets or bolts, do. . . . 30 

do. braziers' bottoms, do. . . 75 
Cordage . . . do. . . 50 
Cassia, in boxes or bags, per cwt. . 10 

Cotton, American, in square bales 300 lbs 12 J 

do. do. round bales . 

do. E. I., in bales, per 300 lbs 
Cheese, in boxes or loose, per cwt. 
Duck, heavy, per bolt 
do. Ravens, or Russia sheeting, per 
piece . . . • • 
Dry goods, in bales or boxes, per 40 

cubic feet . . 
Earthenware, in crates of 25 to 30 ft. . 
do. in hhds. of 40 to 50 ft. . 

Fish, pickled, per bbl. 
do. dry, in boxes or casks, per cwt. . 
do. in bulk, per cwt. 
Figs, in frails or drums, per cwt. 
Flax, per ton ..... 
Flax seed or other articles, in casks of 
7 bushels ..... 
Flour, or other dry articles, per barrel 
Grain, in bulk, per bushel . 
Ginger, in bags, per cwt. 
Glass, window, in 50 feet boxes . 
Hemp, per ton ..... 
Hides, dried or salted, per hide . 
Hardware, in casks or cases, per 40 feet 

cubic . 
Indigo, in boxes or seroons 
Iron, in bar or bolts, per ton 



16 
9 
3 

n 



40 
15 

30 
6 
4 

2^ 
2J 
60 

10 
4 
1 
2 

75 

n 

40 

4 

20 



cEsm. 



do. in hoops, sheets, or nail rods, per ton 30 



Liquors, in puncheons of 120 galls., per 
puncheon ..... 
Liquors, in quarter casks 
do. in pipes 120 gallons 
do. bottled in casks or boxes, per 
dozen .... 

Leather, per side . . . • 
Lard, in 60 lb firkins .... 
Lead, in sheets or pigs, per ton . 
do. ground in oil or dry, per ton 
Molasses, in 110 gallon hhds. 
Other casks in proportion to their size. 
Nails, in casks, per cwt. 
Oil, in 110 gallon casks or hhds. 
do. in 30 flask chests, per chest . 
do. in baskets, per dozen bottles 
Paints, in kegs or casks, per ton . 
Pork, per barrel .... 

Pepper, in bags, per cwt. 
Pimento, in casks or bags, per cwt. 
Rice, in tierces, per tierce . 

do. in half tierces, per half tierce 
Rags, in bales, per cwt. 
Raisins, Malaga, in casks . 
do. in boxes . 

do. other packages, per cwt. 
Saltpetre, in bags, per cwt. . 
do. in casks, per cwt. 
Salt, in kegs or bulk, per bushel . 
Shot, in casks, per ton 
Soap, in 50 or 60 R) boxes, per box 
Steel, in bars or bundles, per ton 

do. in boxes or tubs, per ton 
Sugar, in boxes or bags, per cwt. 
do. in casks, per cwt. 
do. refined in p'kges or casks, per cwt. 
Tallow, in casks or other packages, do. 
Tea, Bohea, in whole chests, per chest 
do. in half chests . 
do. green or black, in qr. chests 
do. other size boxes in proportion 
Tin, block, per ton .... 
do. in the usual sized boxes, per box . 
Tobacco, in hhds., per hhd. 

do. in bales or seroons, per cwt. . 
do. manufactured, in 100 lb kegs 
Woods for dyeing, under cover, per ton 
do. in yards, per ton 



Whiting, in hhds., per ton 



30 

^\ 
30 

li 

1 

2 
20 
40 
30 

o 

30 
4 

li 
40 

6 

2J 

2* 
12 

8 

6 

3 

1 

2 

2 

2J 

1 
37* 

2 
30 
40 

2 

2i 

3 

2 
15 

8 

4} 

20 

U 
371 

4 

2 
50 
25 
37 i 




to th« 
turn- 
taken oat 



DUFF'S BOOK-KEEPING. 



<• 



THE QUANTITY OF GOODS TAKEN FOR A TON IN 
- FREIGHTING VESSELS. 

Extract from the By-Laws of the Chamber of CoMxMerce of the City of 

New York. 

Resolved, That when vessels are freighted by the ton, and no special agreement is made 
between the owner of the vessel and the freighter of the goods, respecting the proportion 
of tonnage, which each particular article shall be computed at, the following regulations 
shall be the standard of computation. 

That the articles, the bulk of which shall compose a ton, to equal a ton of the heavy 
materials, shall be in weight as follows ; 



1568 

1830 

1120 

1307 

952 

1110 

8 

6 

20 

16 

12 

6 

7 

8 

200 

22 

36 
36 
31 
29 
40 

1 
10 

8 
10 

8 



lbs of Coffee in casks, 
lbs of Coffee in bags, 
lbs of Cocoa in casks, 
lbs of Cocoa in bags, 
lbs of Pimento in casks, 
lbs of Pimento in bags, 
barrels Flour, 196 lbs each. 

do. Beef, Pork, Tallow, Pickled Fish, Pitch, Tar, and Turpentine, 
cwt. Pig and Bar Iron, Pot Ashes, Sugar, Logwood, and all heavy Dyewoods, Rice, 

Honey, Copper Ore, and all other heavy goods, 
cwt. Coffee, Cocoa, and Dried Fish in bulk, 
cwt. Dried Codfish, in casks of all sizes, 
cwt. Ship Bread, in casks, 
cwt. do. in bags, 

cwt. do. in bulk, 

gallons Wine measure (on the full capacity of the cask) of Oil, Wine, Brandy, and 

all other Liquors, 
bushels of Grain, Peas, or Beans, in casks. 

'/ // // in bulk. 

European Salt, in bulk. 
Salt from the West Indies. 

// Sea Coal, 

feet (cubic) of Mahogany, Square Timber, Oak Timber, Oak Plank, Pine, and other 

Boards, Beaver, Furs, Peltry, Beeswax, Cotton, Wool, and Bale Goods of all kinds, 
hhd. of Tobacco, 
cwt. Dried Hides, 
cwt. China Raw Silk, 
cwt. Net Bohea Tea. 
cwt. Green Teas. 

194 



DUFFS BOOK-KEEPING. 



PART III. 



19S 






I 



DUFFS BOOK-KEEPING. 



PART III. 



COMMERCIAL CALCULATIONS, 



COMPREHENDING ABBREVIATED METHODS OP PRACTICAL COMPUTATION, SETTLEMENT 
OF ACCOUNTS, &c. NOT FOUND IN COMMON ARITHMETICS. 



ADDITION. 

Young accountants, though good arithmeticians, often experience difficulty in addinir up 

long columns of figures with certainty. Such persons will find the following method useful : 

Set down upon waste paper the sum of each column under each other, addinir downwards 

for proof, and if found correct, point oflf the right hand figures, carrying the left to the next 

column, thus: 

4796.27 4.1 

9832.39 37 

325.41 1 9 

9800.99 04 

4723.78 3:5 

70.87 29 

Mark off" the two upper places in the column of amounts, for cents. Read the figures 
marked off at the right upwards — 29549.71, the total product. Any persevering student 
can in a few weeks attain a high degree of proficiency and accuracy in addition by writing 
out long columns of figures upon slips of paper, say sixty or seventy figures in length, and 
practice adding them for half an hour, daily. By this means of regular d;iily exercise, the 
student can ultimately attain such a facility of addition as to enable him to add several col- 
umns of figures at once. Take the above four columns of dollars, and carrying 3 from the 
cents makes the first amount read 73 ; 73 and 4723 are 4796 ; 4796 and 9800 are 14596. 
and so on to the head of the column. The student must practice first upon short columns, 
such as will require but little carrying. As he uses longer columns, carrying becomes un- 
avoidable, but the eye soon becomes accustomed to the reiding process in figures as well aa 
letters. It only requires time and application to acquire it in either. 

197 



DUFF'S BOOK-KEEPING. 



ON COMMERCIAL CALCULATIONS.— PART HI. 



I 



PBOFIT AND LOSS. 

Under this head we shall confine ourselves to exercises upon the rule for determining the 
per centage gain or loss upon a merchandise account. See pp. 33 and 36. 

Example 1. Purchases of merchandise for $11400.25. Sales effected in seventy-three 
days, 69400.84. On hand, 83400.84. Kequired the total gain, the average daily sales, 
the average gain per cent, and the average daily profits. 

\nswer. Total gain ...... $1401.43. 

Average daily sales * . . . 128.78, nearly. 

Average gain per cent 17^, nearly. 

Average daily profits . . . . 19.19-f-. 

Ex. 2. Suppose the purchases $12405. Sales effected in 150 days, $7609. On hand, 
$6800. Required the total gain, the average gain per cent, the average daily sales, and the 
average daily gains. 

Ans. Total gain. $2004. Average gain per cent. $35-j^jW. Average daily sales, 
$50.72f . Average daily profits, $13.36. 

Ex. 3. Purchased, $8000. Sold in 90 days, $5000. Amount on hand, $4000. Re- 
quired the daily average sales, the daily average profits, the total gain, and the gain per 
cent. 

Ans. Total gain, $1000. Daily sales, $55.55|. Daily profits, $11,111^ and 25 per 
cent. gain. 

Ex. 4. Purchased, $4226. Sold in 60 days, $1585. Remaining on hand, $3202. 
Required the daily average sales, the total gain, the daily gain, and the gain per cent. 

Ans. Total gain, $561. Daily gain, $9.35. Daily sales, $26,416. Average gain, 
54|5J per cent. 

Ex. 5. Purchases, $6895. Sold in 36 days, $4011. On hand, $2223. Required the 
total gain or loss, the daily sales, the daily gain or loss, and the gain or loss per cent. 

Ans. Total loss, $661. Daily sales, $11 1.41i. Daily loss, $18.36^, and 14 -{-percent, loss. 

The same rule gives the per centage gain or loss upon any amount of sales. 

Ex. 6. Bought candles at 13 cents and sold them at 16 cents. Required the gain per 
cent. Ans. 23^3 per cent. 

Ex. 7. Bought sugar at 5J cents *^ lb and sold it at 7i cents. Required the gain per 
cent. Ans. 36j'*j per cent. 

Ex. 8. Bought molasses at 25 cents *^ gal. and sold it for 23 1 cents. Required the loss 
per cent. Ans. 5 per cent, 

Ex. 9. Bought cloth at §2.622 and sold it at $3.10. Required the gain per cent. 

Ans. ISj^y per cent. 

Ex. 10. Sold merchandise at 10 per cent, advance on the first cost, from which I deduct 
5 per cent, from the face of the invoice for prompt payment. Required the net per centage 
gain. Ans. 4^ per cent. 

Ex. 11. Sold merchandise at 30 per cent, advance ; from the face of the invoice deducted 
20 per cent. Required the net per centage gain. Ans. 4 per cent. 

Ex. 12. Sold merchandise at 50 per cent, advance on the prime cost. Allowed the 
retailer 40 per cent, discount on the face of the invoice. What is my net per centage, gain 
or loss ? Ans. 10 per cent. loss. 

Ex. 13. A manufacturer sold his productions by retail at 25 per cent, advance on the 
cost of production. He gave up the retail business, and agreed to furnish retailers at 20 
per cent, discount upon his retail prices. Required his net per centage gain. 

Ans. Nothing. 

Note. — The effect of discounts in such cases as the above is often overlooked by the inexperienced. The results of these 
esampies 6bu'Hi the practical importance of understanding the matter. 

-tno 



TO FIND COMMISSION AND BE0KEEA6E. 

RULE. — For 1 per cent, point off two places, and for 10 per cent, point off one place, to 
the right of the given sum. Take aliquot parts for the intermediate rates. 

Ex. 1. Required I per cent, brokerage on $1268. 



Ex.2, 
Ex. 3. 
Ex.4. 
Ex.5. 
Ex. 6. 
Ex. 7. 
Ex.8. 
Ex.9. 



// 
ff 

II 
II 
If 
II 
It 
It 



1 

4 

I 
1 

li 

5 

7i 
10 



It It 1842. 

tt n 850. 

u . 899, 
u commission on 1668.88. 

It H 248.44. 

// n 1499.90. 

It ff 664.40. 

// n 779.49. 



Ans. 


$3.17. 


Ans. 


9.21. 


Ans. 


6.375. 


Ans. 


8.99. 


Ans. 


20.861 


Ans. 


6.211 


Ans. 


74.995 


Ans. 


49.83. 


Ans. 


77.949 



Ex. 10. Received $5000 to invest in a bill on New Orleans, which I purchase at par. 
Required the amount of the bill, and also my brokerage, which is ^ per cent, on the bill. 

Ans. Bill, $4975.124. Brokerage, $24,876. 

Ex. 11. Received $3000 to invest in a bill, which I procure at 2 per cent, discount 
Required the amount of the bill, also my brokerage, which is \ per cent, on the face of the 
bill. Ans. Bill, $3045.68+. Brokerage, $15.23, nearly. 

Ex. 12. Net proceeds of J. Taylor & Co.'s sales, $2639. They desire the amount in- 
vested in a bill on New Orleans, and remitted them. Bills are 1 per cent, premium. My 
brokerage is i per cent, on the investment. Required the amount of the bill. 

Ans. 82600. 

Ex. 13. Remitted my correspondent in Mobile, $6000, to be invested in cotton. His 
commission is 5 per cent, on the investment. Required the amount of the invoice and his 
commission. Ans. Invoice, $5714.29. Commission, $285.71. 

Ex, 14. Received from Gr. Page, $9000, to be invested in hops. My commission for 
purchasing is 2 J per cent, on the investment. Required the amount of my invoice and my 
commission. Ans. Invoice. $8780,49. Commission, $219.51. 



ON INTEEEST. 

The legal rate of interest in Pennsylvania, New Jersey, Delaware, Maryland, A'irgiaia^ 
North Carolina, Tennessee, Kentucky, Ohio, Indiana, Illinois, Missouri, Arkansas, District 
of Columbia, and on all debts due the United States, is 6 per cent. 

In New York, Michigan, Wisconsin, Iowa, and South Carolina, it is 7 per cent. 

In Georgia, Alabama, Mississippi, Texas, and Florida, it is 8 per cent. 

In Louisiana it is 5 per cent. 

In England and France, 5 per cent. 

In Canada, Nova Scotia, and Ireland, it is 6 per cent. 

When the rate of interest is above or below 6 per cent,, first find the interest at 6 per 
cent., then add or subtract the difference, viz. : For 5 per cent, deduct i, for 7 per cent, 
add i, and for 8 per cent, add i of the interest found at 6 per cent, 

TO FIND THE INTEREST AT SIX PER CENT. FOR MONTHS. 

RULE I. — Remove the decimal point two places to the left in the principal, then multi- 
ply by half the number of months. The product is the interest required. 

199 



DUFF'S BOOK-KEEPING. 



TO FIND THE INTEREST FOR DAYS. 



RULE II.* — For 60 days, point off two places in the principal, and it becomes the in- 
terest. For 6 days, point off three places, and the principal becomes the interest. For 5, 
10, 15, 20, 25, 30, &c. days, take aliquot parts of the interest found as above for 60 days. 
For other numbers, multiply the interest found as above for 6 days by i the given number 
of days. The product is the answer. 



Example 1. 


Required the 


int 


// 


2. 


// 


II 


» 


3. 


It 





» 


4. 


It 





» 


5. 


n 


w 


K 


6. 


n 








7. 


It 





tf 


8. 


II 





a 


9. 


n 





H 


10. 


It 





n 


11. 


It 





B 


12. 


It 





n 


13. 


It 


II 


w 


14. 


II 





» 


15. 








w 


16. 








w 


17. 


II 





w 


18. 


II 





w 


19. 


II 





It 


20. 


II 





tt 


21. 


If 


n 


» 


22. 


u 


II 


M 


23. 


II 





tt 


24. 








» 


25. 








If 


26. 


n 





H 


27. 








H 


28. 








H 


29. 








w 


30. 








» 


31. 








It 


32. 








n 


33. 








u 


34. 


II 





It 


35. 








n 


36. 








It 


37. 








It 


38. 








It 


39. 








It 


40. 


1. 





It 


41. 








n 


42. 








w 


43. 


ti 






229.70 
664.40 
712.60 
964.30 
667.60 
1267.70 
1461.12 
48.48 
194.14 
3344.20 
1616.60 
1718.80 
2120.40 
412.12 
1886.18 
1854.54 
1794.92 
1763.30 
2788.80 
5. 
7. 
180.48 
284.60 
363.24 
1216.40 
1890.90 
2412.64 
1518.90 
1920.60 
1266.48 
2424.66 
1098.48 
726.24 
960.48 
1566.96 
1399.97 
1224.12 
369.18 
96.84 
636.69 
224.42 
846.60 



for 1 month. 

2 mos. 

3 

4 

5 

6 

7 

8 

9 
10 
11 
12 
16 

2 years and 1 mo. 

2 // 3 



2 // 

3 I, 

4 // 
4 // 
4 I, 

60 days. 

6 

5 
10 
11 
<15 
20 
22 
25 
30 
33 
35 
40 
44 
50 
63 
66 

1 

2 

7 

8 
12 
13 



9 
8 
5 
8 
10 



Ans. 
II 



II 
II 

It 
If 

n 

II 
II 
II 
II 
II 
It 
It 
II 
It 
If 


II 
II 
II 
n 


n 
n 
II 
If 
II 





II 
II 


II 
II 
II 




$2.24t 
2.297 
9.966 
14.25t 
24.107t 
20.028 
44.369t 
58.444t 
2.181t 
9.707 
183.931 
96.996 
137.504 
265.05 
55.636t 
311.219t 
407.998t 

475.653t 
493.724 

808.752 
.05 
.007 

.151 
.391 

.665t 
3.041 
6.303 
8.846t 
6.328t 
9.603 
6.965t 
14.l43t 
7.323t 
5.325t 
8.004 
16.453t 
15.399t 
.204t 
.123} 
.112t 
.848t 
.448t 
1.834t 



ned by judicial decisions, and it is almost universally 



* This Rule, though admitted to be slightly inaccurate, has been sustai 
nsod by merchants in this country. It is based on the supposition of the year being divided into twelve equal months of .30 
daya each— 360 days. It therefore gives the interest j^s = jj part too much. 

200 



Example 44. 

// 45. 

" 46. 

/' 47. 

// 48. 

'/ 49. 

/' 50. 



ON COMMERCIAL CALCULATIOJS^S.— PART III. 

Ans. 



Required the interest of $960.84 for 17 days 

1236.18 // 19 

1122.22 // 27 

1860.48 // 29 

246.24 // 37 



II 
It 

N 
If 
ft 
II 






II 




« 321.21 // 39 

9666. II 40 



II 
II 
11 
If 
If 
II 




II 








82.722-f- 
3.914-j- 
5.049-f- 
8.992 -f- 
1.518-j- 
2.087+ 

64.44 



Februafy *27.'^ "''' '"' "^"^'^ ^'"""''^ ^^' ^^^^' ® ^^ ^^^'' ^^^"^^^^ *^« unexpired time, 
Ex. 52. A note dated March 30, @ 90 days. Required the unexpirtd^'Le^ Mt723. 

UuJ!: ^ ""'" ^'''^ ^^'' ^'''^' ® ^ "^^^^^- ^«^-^^d '^^ "°4rred tfme^oTihe 

February 1, 1^85^ '''"' ^''''" ''' ''''' ® ' "^"^^^^ ^^^"^^ thfunexpiredTme, 
Ex. 55^ ' A note for $1368.72, dated 10th September, 1852, having 12^monthfto'^ruo is 
discounted on the 21st October. Required the interest in the unexpired tTme. ' 



Due 



OPERATION. 

Tear. Month. 

1853 . . 9 . . 
1852 . . 10 . . 



Day. 

13 
21 



10 . . 23 unexpired time.* 

Ans. Interest on the same, S73.682-f-. 

Ex. 56 A note for $360, dated May 31, @ 6 months, is discounted September 14 
Required the unexpired time and interest for th^ time. (September 14. 

Ex, 57 A note for 1960.96, dated 30th Juot @ 9oX'is dlLlnlTS'teTr 9 
Required the unexpired time and the discount. i^^^ounrea September 9. 

Ans. Unexpired time, 22 days. Discount, $3.5234-. 

It now remains to notice what is called Partial Pavments— wher^ nnf^Q nr \.r.r.A -j 

by ..stallmentB. There are two rules for computing'thHaterSt such cl^""'' "" f"^ 

thp^n iTti!^''^'"'?'? KULE.-Find the amount of the principal at the date of settlement • 

s s,^trr.£;s.&r"Ar^t=tii ■air-' "'"■- •=- 

This is the. principle upon which Morris' Account Current is settled. (Page 114.) 

II. The Legal Rule.— Compute the interest on the principal to the time of th^ fi,«* 

amC?ofT y^y'^r'T'- ''^''^ '"S**"' "^''^^ the interest then ir From the 
amount of the principal and interest subtract the payment. The remainder i^thT 
principal. Proceed in the same manner with all subsequent payments '^' "*' 

The Courts of the United States and most of the State Courts have adopted this rul^ 

of^.1 'T °n'""?'"'"""'°*' '" Arithmetic will have any difficultTrnapplyt/etW 
tW wni ntf" 9"7»'ject m introducing them here is to show the widely d'Et%e^uL 

!^^t^tds^:ii^m*^r;Se^ ^^'^"'^ transaction, which ,^^ 



* See note on page 200. 

201 



DUFF'S BOOK-KEEPING. 

Bond for $900 on interest at 6 per cent, commencing May 8, 1838, was settled Sept. 8. 1852. 

Payments as follows, viz : 

8, 1839 
4, 1839 . 

9, 1840 
10, 1840 . 

15, 1841 
25, 1841 . 
12, 1841 

2, 1841 . 

19, 1841 
1, 1841 . 

1, 1841 
7, 1841 . 

16, 1842 
24, 1842 . 
27, 1845 

6, 1846 . 

14, 1846 

20, 1847 . 

2, 1848 
4, 1848 . 
4, 1848 

30, 1848 . 

15, 1849 
1, 1850 . 

7, 1852 

Upon computing the interest on the ahove transaction by the Me^«/fti\I^"l« '^}ZIV 
balance due on the mortgage of $88.07. By the Legal Rule we find the balance $266.37, 
making a difference in the settlement of this $900 mortgage of $178.30. It niust be ad- 
mitted! however, that the annual rests usually made by merchants in settling accounts would 
have made a difference in favor of the creditor ; but as these rests were not made at tte proper 
time we could not go back into the account and make them afterwards. It is to be observed, 
however, that the Legal Rule, in this and all similar cases, gives the creditor compound m- 
tercBt in its most exacting form, as every time the debtor makes a payment the interest is 
compounded against him. I could have adduced many other examples to show in the most 
strTking manner, the difference resulting from these different methods of computing interest 
-to show that the difference is always increased in an accelerated ratio as the payments are 
multiplied or the time prolonged. In the case of Clancert^ vs. Latouche 1 Ball & Beat 
420 the difference resulting from the different methods of computing interest was about 
£24000 sterling. It may be asked what remedy is to be proposed in the confusion and un- 
certainty that Lists in the law relating to this matter? We answer, None. It is only 
proposed to make all concerned aware of the difference resulting froni the two methods, and 
leave the parties interested to govern their transactions accordingly If I mistake not 
the law allows the debtor, when paying money to a person to whom he is indebted on two 
accounts, to appropriate the payment to the discharge of whichsoever account he plea^es- 
the one ;hich is the most burthensome to him, the one which bears mterest-provided he 
makes his election at the time of payment. If he does not do so the creditor can make h s 
election, and will, of course, apply the payment to discharge the interest first and tbe surplus 
to paying the principal. If neither party makes an election I believe the law will do it for 
them, and will apply the payments to discharge that debt which bears hardest upon the debtor. 
It will be see^ that the debtor on the above mortage made eight payments upon it m one 
year, and the creditor, availing himself of the Legal Rule at the time of settlement com- 
pounded the interest Against him eight times in that year. Nothing but ignorance of the 

202 



1st payment 


, May 


2d 


II 


June 


3d 


II 


Jan. 


4th 


II 


June 


5th 


II 


Jan. 


6th 


II 


May 


7th 


II 


June 


8th 


II 


July 


9th 


II 


Aug. 


10th 


II 


Sep. 


11th 


II 


Nov. 


12th 


II 


Dec. 


13th 


II 


Feb. 


14th 


II 


Sept. 


15th 


II 


Oct. 


16th 


II 


July 


17th 


II 


Oct. 


18th 


II 


Mar. 


19th 


II 


Alar. 


20th 


II 


May 


21st 


II 


July 


22d 


II 


Sep. 


23d 


II 


Apr. 


24th 


II 


Mar. 


25th 


II 


Sep. 





86. 




. 50. 




104. 




. 28. 




50. 




6. 




5. 




. 20. 




20. 




. 15. 




10. 




. 10. 




19. 




. 80.50 




25. 




. 50. 




25. 




40. 




20. 




. 35. 




43.50 




. 58. 




48. 




9. 



ON COMMEECIAL CALCULATIONS.— PAET IIL 

consequences would permit any debtor to make payments in such a manner. What I have 
now stated will, it is to be hoped, make the matter fully understood. 

ADJUSTMENT OF INTEREST, GAIN, LOSS, &c. 



For Rule see page 180. 

Example 1. Kay^s paid up capital for 12 months is 

He drew out for 6 months . 
Long's paid up capital for one year was 
He drew out for 5 months . 



8600. 
S800. 



$12000. 
$14000 



^ Required the Journal entry for adjusting the interest between the partners without pass- 
ing it into the interest account. 



$59. 



Answer. Kay Dr 

To Long ^59. 

Ex. 2. C. paid in $8000 for 1 year and drew out $400 for 9 months. 

D. paid in $16000 for 1 year and drew out 8800 for 3 mos. and $400 for 8 mos. 

E. paid in $14000 for 1 year and drew out $11000 for 4 months. 

F. paid in $11000 for 1 year and drew out nothing. 
Required the Journal entry for adjusting the interest between the parties. 

Ans. Sundries, Dr. to D $263.50 

C . $206.50 

E • . . . 48.50 

^ 8.50 

The same rule will adjust lost time between mechanics who are in partnership. 

Ex. 3. Three mechanics, X., Y., & Z, equal partners in their business, with the under- 
standing that each is to be charged with $1.50 per day for all lost time. At the time of 
settlement it was found that X. had lost 24 days, Y. 6 days, and Z. 32 days. Required 
the Journal entry for adjusting the matter between them. 

Ans. Sundries To Y §22. 

-^* • • • • . . . $ 5. 
Z 17. 

Ex.4. N.is |,0.§,P.|,and Q. f, proprietors in the business. N.lost 24.0. 48, and P. 6 
days. Q. lost no time. Each was chargeable with $1.50 per day for lost time. Required 
the Journal entry for adjusting the matter. 

Ans. 0. To Sundries $42.75 

N $7.87 



II 



P. 



5.63 



'' Q- . 29.25 

Ex. 5. R., S., T., & U. dissolved partnership, and divided all their effects, when it was found 
that the following balances were due to each, viz. : 

n. . . , $760. T. . . . $582. 
^*^ 470. U 680. 

The books were kept by single entry. The partners are equal in gain or loss. Required 
the Journal entry that will be made when the sums are paid and received for final settlement. 

Ans. Sundries To Sundries . . $194. 

^ $137. 

U 57. 

ToS §153. 

'' T 41 

Ex. 6. v., W.,&X. dissolved partnership, and after dividing all their effects there was a 
balance due V. of $940 ; due W. $90. X. was indebted $140. The firm owes a note of 8268. 

203 



DUFF'S BOOK-KEEPING. 

The partners are equal in gain or loss. Required the sums to be paid and received among 
the partners, which will leave them all to share equally in the loss, and take up their note. 
^ Ans. Y. receives $554. W. pays $296. X. pays $526. 



Journal entry when the money is paid and received : 

Sundries To Sundries, $822. 
Bills Payable, for note taken up 
V. for amount paid him 



$268. 
554. 



To W., for amount refunded 



// 



X. 



// 



// 



$296. 
526. 



Ex. 7. G-. is I, H. is i, I. J, and J. i, partners in business. After dissolution and divi- 
sion of all their effects, their accounts stood as follows : — Balance due Gr. is $28, H. $84, I. 
is indebted to the firm $44, and J.'s account is balanced. Required the Journal entry that 
will be made in the books of the firm, when the amounts are paid and received, for the final 
settlement between the partners. 



Ans. Sundries To Sundries, $78. 

VT. .... 

H. .... 
To I. . . . 

II J. 



$2.50 
75.50 



$61. 
17. 



Ex. 8. K., L., M.,and N. partners in business, kept their books by single entry, and after 
dissolution and division of all their effects, they find their accounts standing as follows upon 
their books, viz. :— There is a balance due K. of $280; due L. $840 ; M. is indebted to the 
firm $440 ; N.'s account stands balanced. K.'s original capital was $3400; L.'s, $1200; 
M.'s $2220 ; and N.'s, 82180. The profit or loss was to be divided in proportion to the original 
paid' up capital. Required the Journal entry that will be made in the books of the firm, when 
the amounts are paid and received, to effect the final settlement between the partners. 



Ans. Sundries To Sundries, $772.44 
K. for amt. received 
L. " " • • 

To M. for amt. paid in . 
// N. // If 



$23.11 
749.33 



$607.73 
164.71 



Ex. 9. C. Rush, R. Lyell, and F. Fish, partners in business, kept their books for several 
years by single entry. They finally closed them, made a dividend of the profits, and re- 
opened them by double entry, which necessarily exhibited each partner's net capital at this 
date. Some time afterwards. Rush furnished their book-keeper with an account of $840, 
which he had withdrawn for his own use from the firm, previous to the closing of the old 
books and which he had kept a private account of without entering it to his account in the 
books' of the firm. Rush and Lyell were each i and Fish ^ gain or loss in the business. 
Required the Journal entry to settle the above $840 between them on their new books. 

Ans. Rush To Sundries, $630. 

To Fish $420. 

// Lyell .... 210. 

Ex. 10. On July 1, 1853, W. Wood retires from the firm of Hay & Wood. Their Bal- 
ance Sheet is made out for settlement. We find their Profit & Loss Account Dr. $1280, Cr. 
^2450, and their Commission Account is credited $3400, in addition to which it is entitled 
to 5 per cent, commission on sales effected on the following consignments, which are only 
partly sold, viz.:— On R. Cargo's sales, which is Dr. for charges posted, $400, and Cr. for 
gales effected, $7800; due by average May 1, 1853. M. Loder's sales is Dr. for charges 
posted. $300; Cr. for sales effected, $9400 ; due by average September 1, 1853. ^ 

Required the Ledger specification exhibiting the disposition of the above consignments, 
with the commission'^and interest on the same in the partners' Balance sheet. (See Direc 
tions, page 177.) 

204 



ON COMMERCIAL CALCULATIONS.— PART III. 

Then suppose Hay continues the business in his own name and completes the sales of 
Cargo's goods — total sales, $9800. He also completes Loder's sales — $10,400. The charges 
posted are, in both cases, as above stated. Under the Ledger specification already made, 
exhibit Hay's Commission Account, re-opened and credited for the commission on the final 
settlement of the consignments. 

Ans. The firm will owe Hay $70.10 int. 

The student will write out the Ledger specification. 



BUYING AND SELLING STOCKS, &c. 

Ex. 1. Required the value of Hudson River Railroad Stock, which makes a dividend 
of 8% per annum, payable semi-annually, money being worth 6 per cent, per annum, pay- 
able semi-annually. 

Solution.— 6 : 100 : 8 : : $133i. Ans. That is, $100 of stock is worth $133 J, or 33i 
per cent, advance. 

Ex. 2. What is the value of the Citizens' Bank Stock, which has made a dividend of 5 
per cent, per annum? Money worth 6 per cent. Ans. 16§ per cent, discount. 

Ex. 3. Bought $500 in Exchange Bank Stock, which divides 9 per cent, dividend per 
annum. Money being worth 6 per cent, interest. I am to pay the amount in Tennessee 
money which is at 3 per cent, discount. Required the amount of Tennessee money it will 
take to pay for the stock. ^ Ans. $773.20, nearly. 

Ex. 4. Sold $2000 of City Bank Stock, which divides 7 J per cent, per annum. Received 
in part payment $1000 of Winchester Railroad Stock, which divides 4J per cent, per 
annum. Money worth 6 per cent, interest. Required the balance I am to receive in 
inoney. Ans. $1750. 

Ex. 5. London Bridge Stock is said to divide 2 per cent, per annum. Money in England 
being worth 5% interest. Required the value of this stock. Ans. 60% discount. 



DOMESTIC AND FOREIGN EXCHANGES. 

Ex. 1. Bought a bill on Boston, for $780, at 1 % premium. What must I pay for it? 

TP o T^ 1 -^^s. $787.80. 

JliX. 2. Bought a bill on New Orleans, for $1680, at f per cent, discount. What must I 
pay for It? ^j^g. $1667.40. 

Ex. S. Sold my bill on St. Louis, for $1840, for 1 J% discount. Required the amount 
I shall receive. ans. $1812.40. 

Ex. 4. Sold my bill on London, for £450 sterling, for 8 per cent, premium. Required 
the amount.* ^^^g ^9160. 

Ex. 5. Bought a bill on London, for £1266 15s.t at 9i% premium. What shall I have 
to pay for It? Ans. $6164.85. . 

JliX. b. 1 owe Holderness & Chilton, of Liverpool, $7218, net proceeds of sales of mer- 
chandise efi"ected for them, which I am to remit them in a Bill of Exchange on London for 
such amount as will close the transaction, less i per cent, on the face of the bill, for my 



di^d^^^'T^'' *'^*°^*' ^^^"^""^ '"''"''^ '°*° ^^'^^''*^ currency, multiply by 4f To change Federal currency into sterUng. 
t If there be shillings and pence, change them into the decimal of a pound, and multiply as before 

205 



DUFF'S BOOK-KEEPING. 

commission for investing. Bills on London are 8 per cent, premium. Required the amount 
of the bill, in sterling, to be remitted. Ans. £1500 5s. Q-fd. 

Ex. 7. A., of Pittsburgh, sent articles to the World's Fair, in London, which were after- 
wards sold by B., of London, on A.'s account— net proceeds, £1266 15s. sterling. B. was 
instructed to invest this amount in Bills on New York, and remit to A., which was accord- 
ingly done. B. charged i per cent, brokerage, on the face of the bills, for investing, and 
purchased the bills at 7 per cent, discount. Required the amount of the bill A. must re- 
ceive in Federal currency to close the transaction. Ans. S6037.53, nearly. 

We confine our illustrations of Foreign Exchange to Great Britain, because a knowledge 
of it is necessary to understanding the accounts in this system of Book-keeping. But to 
treat of Exchange upon all foreign countries would require space which we can appropriate 
to matters of greater interest to the majority of our patrons. 



ON COMMEKCIAL CALCULATIONS.— PAET IIL 



Ex. 2. Insured my ship, the Chieftain, for $65000, to Canton and back, for 4} per c 

dll it amount to ? Ans. §2762.5i 



premium. What will it amount to ? Ans. §2762.50. 

Ex. 3. Insured the ship Ironwood, for $48000, at 2* %, and gave my note for the pre- 
mium. Before the note was paid the ship was lost, and the insurers paid the loss. Required 
the amount I received, taking up my note as part payment. Ans. 846800. 

Ex. 4. Insured the ship Roscoe, (which was worth $47500,) for $45000 at 2 per cent, 
policy, $1, to Liverpool and back to New York. Freight out was $12500. Expenses at 
Liverpool, $4500. The ship was lost on her return. The insurance company has paid the 
insurance. Required each owner's share of the net proceeds of the vessel. W. Hay is i, 
myself i, and C. Hartwell h. 

Ans. My share, $13024.75. Hay's, $13024.75. Hartwell's, $26049.50. 

Ex. 5. I wish to insure merchandise on board the ship Chieftain, for San Francisco. 
Amount of invoice, $12447 ; cost of policy, $1 ; premium is 2 per cent. Required the pre- 
mium, and the sum upon which we insure to cover the premium and policy. (See Note 3, 
page 84.) Ans. Amount to cover, $12702.04. Premium. $254.04. 



INDIEEOT EXCHANGE 

Effects a remittance through one distant place to another. It is sometimes termed the 

Arbitration op Exchange. 

Ex. 1. I wish to remit George Wildes & Co., of London, £3600 sterling. Exchange on 
London in New York, is 10 per cent, premium. Exchange on London can be obtained at 
TT_i:i?__' XT » c! *;„ -p^- Q ^«« ««T>+ vM.ATn^iTn Naw VnrV T?il1s nn Halifax are i ner cent. 



Halifax, Nova Scotia, for 9 per cent, premium. New York Bills on Halifax are \ per ce 
discount. If I remit a draft to Halifax, and pay my agent ^ per cent, for investing it 
Bills on London, what will I gain over the direct Exchange ? 

SOLUTION. 

£3600 sterling = $16000 @ 10% prem. = cost of the direct Exchange . . $17,600.00 
Halifax Bill on London, @ 9 % + ^% for investing . . $17,520.00 
i% discount for New York on Halifax ^^-^^ 

Cost of the indirect Exchange 17.476.20 

Gain «123.80 

Ex. 2. I have to remit £6300 to London. New York Bills on London are 10 J per cent, 
premium. New York on St. John, New Brunswick, f per cent, discount. St. John on 
London is 9J per cent, premium. If I pay my agent in St. John I per cent, for investing, 
what will I gain by the indirect Exchange ? Ans. $370.48. 



INSUEANOE. 



Insurance is a security given by underwriters or insurance companies to the owners of 
ships, houses, or other property, to indemnify them in case of loss by fire or shipwreck. 

The premium is always a percentage on the value insured. The written and printed 
document held by the party insured as evidence of the contract of indemnity is called the 
Policy. 

Ex 1 If I get my house insured for $4500, at 1 J per cent, premium, what shall I pay 
as premium? Ans. $56.25. 

^ 206 



SIMPLE EQUATIONS. 

RULE.— See page 68. 

Ex. 1. Received from John Fowler, for sale on commission, 900 bbls. flour, upon which 
paid freight and charges, $14. After charges, storage, 6^^ cts. "^ bbl. Laborers' wages, for 
storing and hoisting out, $2.50. Commission for selling, 2 J %. Sales effected as follows, 
viz. : 

May 1, 40 bbls. @ $4.50, for cash ; 



II 19, 60 
June 2, 150 
ft 2, 50 
// 11, 500 
// 21, 50 



II 
II 
II 
II 
II 



@ 4.75, on acct. @ 30 days ; 

@ 4.80, on note, @ 60 // 

@ 4.50, for cash j 

@ 4.75, on note, @ 90 days ; 

@ 4.80, // @30 

@ 4.50, for cash. 



// 



// 30, 50 

Required the account sales showing the net proceeds, and when due. 

Ans. Net proceeds, $4071. Due, August 13th. 

Ex. 2. Received from Lyon, Haven k Co. for sale on consignment, 150 bbls. mackerel 
and 40 bbls. salmon, upon which paid freight and cartage, $190. Labor in storing. $1.70. 
Commission on the sales, 5 per cent. Sales effected as follows, viz : 

June 7, 40 bbls. mackerel, @ $12.50, on acct. @ 3 mos. 

// 19, 10 // salmon, @ 18.75, on note, @ 30 days ; 
July 1, ^ II II @ 18.00, for cash; 

// 17, 100 // mackerel, @ 12.75, on note, @ 60 days ; 

II 29, 16 II salmon, @ 18.75, on acct. @ 30 days. 

State the account sales, showing the net proceeds, when due by equation, and the balance 
of goods on hand. 

Ans. Net proceeds, $2043.175. Due, September 5. 

Ex. 3. Received from George Carver, for sale on his account, 80 tons Iron. Freiirht 
and charges paid, $74. Commission for selling, 5 per cent, which was sold as follows :* 



* The sales being all at 6 months, we may equate between the days of sale. 

207 



DUFF'S BOOK-KEEPING. 

May 20, Sold at 6 months, on acct. 12 tons, @ S65 



u 31, 
June 20, 

n 30, 

July 11,^ 

;/ 11, 

// 11, 

H 19, 



u 



n 

H 

u 
II 
II 
II 
II 



II 
II 
II 
II 
II 
II 
It 



8 
15 
18 
6 
4 
8 
4 



@ 

@ 



@ 
@ 



66. 
65. 
64. 
66. 
65. 
65. 
66. 



We are to pay Carver the net proceeds in a note payable 6 months after date Required 
the amount of it, and the day on which it must be dated. Also, the account sales, showing 

the amount on hand. . _- -^ «« /-v i i r> . 

Ans. Date of note, for 84494.55, June 22. On hand, 6 tons. 

Ex. 4. Sold John Taylor & Co. : 

April 30, Invoice of Merchandise, @ 4 months, $620.49 
Tt/r^ n' .. .. ^^ ft n 7.^0.50 



May 

n 
July 






1, 

30, 

1, 
11, 
11, 



u 

» 

9 
W 



@ 6 // 730.50 

@ 30 days 480.80 

(a) 60 ff 560.95 

@ 60 // 330.40 

@ 4 months, 500.00 



Required the day upon which the above account will fall due, by average. 

^ "^ Ans. September 16. 

Ex 5 Received of Charles Page, for sale on his account, 30 hhds. N. 0. sugar, upon 
which paid freight, 860; cartage, 87.50; storage 89. Commission and guarantee, 5 per 
cent. Sales effected as follows : 

Au<-. 1, Sold, on note @ 60 days, 4 hhds. 4660 lbs. less 10 per cent, tare, 5| cts. 



30, 
30, 
30, 
Sep. 16, 
u 30, 



II 



11 @ 3 mos. 6 
for cash, 3 

on acct. @ 60 days, 7 
for cash, 4 

on note, @ 3 mos. 6 



// 


5880 / 


r // 


It 1 


r bi ti 


// 


3390 / 


1 n 


If 1 


1 5i // 


II 


6990 / 


1 u 


H 1 


/ 5f // 


II 


4830 / 


1 n 


H 1 


/ 5i // 


II 


5960 / 


1 tt 


If 1 


/ 51 // 



Required the account sales, exhibiting the net proceeds and the day when the same is 
due, by average. Ans. Net proceeds, 81424.78. Due, November 1. 



STOEAGE EQUATIONS. 

Equation is applied to the storage of property by the following 

Rule —Multiply the number of packages by the number of days that they have been in 
store. Divide the product by 30; the quotient is the number of packages subject to one 
month's storage.^ 

Ex. 1. I have stored 1500 bbls. flour for 4 days. Required the number of bbls. subject 

to one month's storage. ^ ^^ «^^ 1 1 1 * 

^ Solution.— 1500 X 4 days = 6000 h- 30 = 200 bbls. Ans. 

bbls. bbls. days. days. 

Proof— 1500 : 200 : : 30 : 4. 



TK.-a nnA thfi fwo followin" Bales may be added together and make bnt one product. , . „ j tj n v 

5^E -^VherelnumS of pacLSef are received^and delivered at different dates, proceed as in Compound Fellowship. 

208 



ON COMMERCIAL CALCULATIONS.—PART III. 



Ex. 2. May 1, Received 200 bbls. flour. 

" 16, II 300 II n 

June 1, // 400 u u 

July 13, // 500 // // 

20, // 700 // // 



Aug 



May 10, Sold 150 bbls. 

II 18, II 30 // 
June 10, M 550 // 
July 30, // 660 // 
Aug. 30, // 700 II 



Required the number of bbls. subject to one month's storage on August 31. 

Ans. 1269 bbls. 
Ex. 3. Received the following consignments from J. L. Starr & Co., viz. 



Sept 

II 

II 
Oct. 

II 
Nov 



1, Received 15 hhds. sugar. 
12, 1/ 80 bbls. molasses. 
30, II 30 hhds. tobacco. 
^ 6, // 40 H sugar. 
20, II 50 bbls. molasses. 
30, 11 40 hhds. tobacco. 



Sept. 20, Sold 12 hhds. sugar. 
Oct. 1, // 40 bbls. molasses. 
Nov. 1, // 43 hhds. sugar. 

» 10, // 60 bbls. molasses. 
Dec. 1, // 65 hhds. tobacco. 



Required the number of hhds. and bbls. subject, each, to one month's storage, Dec 1 

Ans. 48 hhds. sugar. 160 bbls. molasses. 63 hhdl tobacco! 



COMPOUND EQUATIONS. 

For Rule, see note on page 116. 

Ex. 1. May 1, 1866 received of R. Morris, London, 40 bales carpet. Paid frei-ht and 
other charges in cash, $1600 Sold the carpets the same day, on note at 6 mos. f^ §60(2) 
du^k casT '''' ^"^'^°*'^' ^%- I^equired the day on which R. Morris' net proceeds are 

fr^t "/r"''' "^^ ^L'' ^- ^^^*"^"' '' ^-*-' ^^ -- U^^ints'^'paid 

S ' O tl?'^'' 'T^' f??- i"^^ ^^ ""'"'^''^ ^'' ^'^^ «« ^« ^t 30 days' sight tbr 
^2000. On the same day sold the 50 cases prints, on note at 4 mos. for S5400. Commis- 
sion and guarantee, 5%. Storage, $10. Required the day on which the balance of thTn^ 
proceeds will be due .n cash Ans. Balanc'e, $3000. Due, Dec. 5 1866 

. . A ^ ' 1866, sold R. Manly an invoice of dry goods, amounting to 82800 on 
account, at 4 mos^ On the same day I bought of him an fnvoice of flour^at 30 day^br 

f l^'^A. r^ \'' "^^^ f ^ ^ ^^'- ^^" *^^ ^^^^°^^- I^equired the day on which thia 

note must be dated so that neither party will lose interest. 

Ans. Note for $1000. Balance will bear date December 15, 1866. 

Our account with Robert Carver is as follows : 

Jan. 1. Sold him goods on account, at 3 months . 



Ex.4. 

1867. 



// 27. 
Feb. 20. 
Mar. 12. 
Apr. 1. 



// 






ff 



// 
// 



1867. 



Jan. 16. 
Feb. 10. 
Mar. 
Apr. 



Crs. 
Received cash on account 



$600.00 
550.50 
449.80 
500.49 
400.21 



4. 
1. 



II 
II 



II 



II 



$250.00 
300.00 
350.00 
200.00 



J Note 



his order on John Doe, at 10 days 

cash on account .... ^^ 

Required the day on which the balance of the account will fall due" by "average. 
I? c TI- 1 1 1 ^NS. July 14. 

falU * ^^ '''' ""^'"^ *^' ^''^''''^ ^^ ^^"^^"^ ^^y'' ^^^^^"^ (P^S« 116) wiU 

T 209 ^'''' ^^'^^^- 



DUFF'S BOOK-KEEPING. 

Ex. 6. Our account with George Draper stands as follows, viz. : 
July 1. Sold him merchandise, at 4 mos. 
w 10. Paid his order in cash . 
n 30. Merchandise at 60 days 
Aug. 2. '/ " 3 mos. 

r; 19. Paid his order in cash 
Sept. 30- Merchandise at 30 days 
Oct. 1. I* // 60 // 

July 30. Credit for his note at 4 mos. 
Aug. 31. '/ " 90 days 

Oct. 1. " " 30 » . 

II 30. '/ cash in full 

Required the interest due to us or by us on the above account by equation. 

Ans. Dr. equation, Oct. 26. Cr. Nov. 29. Interest due us, Oct. 30, U^.oi. 



. $1600 

80 

. 600 

850 
. 100 

300 
. 450 



$1680 

1450 

400 

450 



COMPUTING FEEIGHT. 

Marine freights are computed by the ton of 2240 lbs for all articles occupying less than 
forty cubic feet to the ton. 

Rule.— Multiply the given number of tons by the rate ; the product is the freight 

Ex. 1. Required the freight of 131 tons 15 cwt. of Iron, at $2.50 pej- ton. ^^^^ ^^ 

Ex. 2. Required the freight of 71 tons 5 cwt. of Copper, at $2.40 per ton. 

Ans. ci7l. 

In the Western River Navigation freight is computed by the net 100 lbs. 

Rule.— Multiply the given number of pounds by the rate, and divide the product by 
100 ; the quotient is the freight. 

Ex. 3. Required the freight of 47491 lbs, at 15 cents per 100 lbs. 

^ Ans. $71.24, nearly. 

Ex. 4. Required the freight of 61221 lbs, at 37* cents per 100 lbs. 

^ Ans. $229.58, nearly. 

Ex. 5. Required the freight of 31121 lbs, at ISf cents per 100 lbs 

Ans. cOO'"""!"- 

Ex. 6. Required the freight of 40411 lbs, at 12i cents per 100 lbs. 

Ans. ^ou.oi— j— • 

The same Rule applies in computing the price of Scantling, Boards, &c. 

Ex. 7. Required the amount of 1721 feet of Scantling, at $1.37^ p^r^lOO ^^^^ 

Ex. 8. Required the amount of 118372 feet of Boards, at $11.25 per M. 

^ Ans. $loi51.by. 

Ex. 9. Required the amount of 70112 feet of Flooring, at $21 per^M. ^^^^ 

Ex. 10. Required the amount of 1129 feet of Oak Scantling, at $3.12* per C. 

Ans. ^oi).-dO-j- 

210 



ON COMMERCIAL CALCULATIONS.— PART III. 



GENEEAL AVEKAGE. 



When damage or loss is incurred by any part of the vessel or cargo, for the benefit of all 
concerned, all who profited by the safety of the vessel or cargo must contribute to the relief 
of those whose property was thus sacrificed. This contribution is called General Average. 

Such sacrifices cannot be made without consultation of the officers and crew, and mustl)e 
absolutely necessary for the safety of the vessel, otherwise Greneral Average will not take 
place. 

Particular Average means a partial loss of the ship or cargo, by the dangers of the sea, 
fire, or other unavoidable accident. This loss must be borne by the owners of the property 
or their insurers. ' 

The vessel and goods injured, saved or lost, are valued at what they would have brought 
in cash at the port of destination. 

It is customary, in calculations of General Average, to allow only two-thirds of the cost of 
replacing vessels' masts or furniture, the new articles being worth one-third more than the old. 

The rule for finding the General Average is similar to that of Fellowship. 

Rule. — As the sum of the values of the contributory articles is to the total loss, so is 100 
to the per centage loss. 

Ex. 1. Suppose the Ship Hudson, on her passage from Liverpool to New York, to have 
sustained the following damages, viz. : 



Cost of replacing masts, rigging, and cables, cut away 

Less i, extra value for being new 
Cost of one anchor, which was lost . . . . 
15 pipes of wine, thrown overboard 
Towing into harbor 



$3000 
1000 $2000 

800 

3000 
200 



General average loss 



$6000 



Contributory interests, viz. : 
Ship Hudson, valued at 
Cargo 
Freight . 

Less portage bill 



$4000 
2000 



As 60000 : : 6000 : 100 : : 10 per cent. 

So that the ship's owners must contribute 
Owners or insurers of the cargo 
Owners or insurers of the freight 



$16000 
42000 

2000 
$60000 



$1600 

4200 

200 

$6000 



Ex. 2. The ship Roscoe, on her voyage from New Orleans to New York, was thrown upon 
her beam ends and obliged to cut away her masts, when she righted, but sprung a leak, in 
consequence of which the following property was thrown overboard to lighten the vessel, 
which was ultimately towed into New York : 



20 hhds. Sugar, belonging to R. Dyer . 
30 w II I, W. Kane . 

Damage done to G. Halis' goods 
Freight of goods thrown overboard . 
Cost of new cables, masts, sails, and rigging 

Less ^, for newness . 
Towing the ship into port 

211 



. $1600 

1800 

. 1600 

120 

$3600 

1200 2400 

80 



$7600 



DUFF'S BOOK-KEEPING. 



ON COMMEKCIAL CALCULATIONS.— PART IIL 



111 



*ni 



n 



Contributory interests, viz. : 

R. Dyer's goods, thrown overboard 
W. Kane's // w ... 

Value of W. Hay's goods, less freight and charges 
a G-. Page's " " " " 

w R. Manly 's " n n n 

G. Halis' n n If If 

If the ship 



Deduct for damages 



Value of the freight 



Less seamen's wages 



$20000 
3600 

86800 
3400 



$1600 

1800 

4200 

5950 

12650 

14800 



16400 



3400 
$60800 



Required the per centage that each party must lose of his interest in the ship, cargo, and 

^^®^^^^- Ans. 12^ per cent. 

We have above given the rule for General Average, with illustrations to explain its applica- 
tion which any good arithmetician will readily understand. But it is to be observed, that 
to understand in all cases what will constitute a General Average loss, and what interests 
are to contribute to it, requires an intimate knowledge of the Law of Insurance. J^or 
instance, it has been decided that the damage sustained by a merchant vessel and cargo, in 
fiahtin- and beating off a privateer, is not a subject for General Average. Also, the removd 
of a quantity of perishable fruit while the vessel was in a port of refuge for the purpose of 
repairs which removal increased an incipient decay, and caused an entire loss ot the truit ; 
this was also decided to be no matter for General Average. In fact it is said by an eminent 
writer upon law to be "the most intricate and perplexing in the whole Law of Insurance. 
The subject will be found judiciously treated in the American editions of *' Smith s Mercan- 
tile Law," and " Abbott upon Shipping." 



ON OPENING BOOKS BY DOUBLE ENTEY. 

Ex 1 I open my books with cash in hand, $100. Deposit in the City Bank, $4900. R. 
Gain's note for $4000 ; interest due on the same, $200. I own house and lot on Water Street, 
worth $30000 upon which I owe $10000 on bond, with $500 interest due on the same. H. 
Stubbs owes me on account, $700. I owe R. Ryan on account, $1500. Required the Journal 
entry for opening my books. 

Ex 2 Commenced business with cash in hand, $250. Deposit in Exchange Bank, 
$7000 Eiohty shares Hudson River Rail Road Stock, $100 per share, with 25 per cent, 
paid upon it Forty shares City Bank Stock, $50 per share, in full. One hundred shares 
Central Rail Road Stock, $100 per share, with 60 per cent, paid upon it. Required the 
opening Journal entry. 

Ex. 3. Jacob Ring pays in cash, $2100. Aaron Budd, $1990. They are to do business 
under the firm of Ring & Budd. Required the Journal entry for opening their books. 

Ex 4. J. Park and P. Buchan, partners in business. Park pays in cash, $1000 j merchan- 
dise, $1100. Buchan pays in cash, $1000; merchandise, $890; notes due him, $100. 
Required the Journal entry for opening their books. 

212 



Ex 6. 



Ex. 5. Rowen & Cox commence business with the following capital, viz. : 

J. Rowen pays in cash, $2000 ; merchandise, $500 ; notes due him, $400. Wm 
Tell owes him, on account, $100. Rowen owes debts which the firm assumes, 
viz. : On his notes, $300 ; to Wm. Yates, on account, $400. 
B. Cox pays in cash, $1800 ; merchandise, $800 ; notes due him, $600. J. 
Pond owes him, on account, $300. Cox owes debts which the firm assumes, 
viz. : On his notes, $700 ; to Geo. Oates, on account, $500. 
Required the Journal entry for opening their books. 
Dean & Brady commence business as follows : 
R. Dean pays in cash, $1400; notes due him, $1200; interest due on these 
notes, $130 ; merchandise, $600. Sands & Turner owe him, on account, 
$200. The firm assumes the following debts owing by Dean, viz. : On his 
notes, $500 ; to Fulton & Gowan, $200. 
D. Brady pays in cash, $1200; notes due him, $1500; interest due on these 

notes, $160. The firm assumes notes owing by Brady, $980. 
Required the Journal entry for opening their books. 
D. Mills is the owner of a Factory, which, together with other effects belonging 
to his business, constitutes a net capital of $40000, which is at the credit of his Stock A^ 
count in a regular set of double entry books. Without closing his books or exhibiting any 
inventory of his property, he agrees to admit J. Roy and B. Gates as equal partners, on'their 
paying into the firm as capital $20000 each, and paying him a bonus of $10000 each, also, 
in cash ; which was to constitute all three partners equal in property, and equal in gain or 
loss. Required the Journal entry for introducing the new partners and their capital into 
the old books. 

Ex. 8. Suppose Mills' capital to be $60000, at the credit of his Stock Account. Roy 
and Gates agree to come in as i partners in the business by paying in, as capital, $30000 
each, in cash, and also to pay Mills a bonus of $5000 each, in cash. Required the Journal 
entry to introduce the new partners' names into the books. Mills to be ^, and Roy and Gates 
each i in property and J gain or loss. 

When a firm establishes branches of its business at distant points, these branches are 
debited and credited in all respects like strangers, and the branches do the same with each 
other and with the head of the firm. 



Ex. 7. 



EXEEOISES IN CLOSING THE LEDGEE. 



Ex. 1. 



tf 



Stock 

Merchandise 
Profit & Loss // 
Bills Receivable tf 
Bills Payable n 
W. Horn // 

D. Camp 



is Dr. $1200 

3470 

850 

2700 

240 

180 

1900 



(f 



Cr. $2800 

// 2400, on hand, $1250 

» 1650 

If 1800 

If 1200 

# 270 

If 420 



Write out a Ledger specification of the above, open a Balance Account, and close the whole 
of the accounts. 



// 



Ex. 2. Stock 

Merchandise 
Profit & Loss 
Bills Receivable ff 
Bills Payable // 
R. Irons a 

John Doe n 



is Dr. $1800 

" 7500 

2150 

980 

200 

750 

1600 



Cr. $2200 

// 4600, on hand, $3500 
If 250 
ff 880 
n 6600 
ff 150 
300 



Write out the, Ledger statement, open the Balance Account, and close the books. 

213 



f , 




DUFF'S BOOK-KEEPING. 



Ex. 3. Stock 

Profit & Loss 

Interest 

Expense 

Storage 

Commission 

Balance 



is Dr. 



H 
If 

n 
It 

If 



$750 
1220 

150 
1410 

750 

9890 



Cr. $4800 

n 1880 

H 450 

If 110 

If 1250 

n 600 

n 5080 



Write out the Ledger statement and make the final closing entries. 

Ex. 4. John Doe and Richard Roe, partners in business, are balancing their books, 
which they find standing at the final closing as follows : 

J. Doe's account is Dr. $420 Cr. $3800 

R. Roe's // 60 '^ 3600 

Profit & Loss " 700 '/ 4900 

Balance // 17320 '/ 6200 

The partners are equal in gain or loss. Required the final closing of the Ledger. 

Ex 5 S.'Boon and R. Simmons find their books standing as follows : 

S. Boon's acct. is Dr. $1230 Cr. $2700 

R. Simmons' n 1050 " 1300 

Profit & Loss '/ 6600 " 900 

Balance ^ 9220 '/ 13200 

S. Boon is f and R. Simmons J gain or loss. Required the final closing of the Ledger. 



PAETNEESHIP SETTLEMENTS BY SINGLE ENTET: 

In single entry Book-keeping, where no Profit & Loss Account is kept, the gain or loss is 
determined as directed on page 18. 

Ex 1. A. paid into firm $600, and drew out $180. B. paid in $300, and drew out $120. 
The undivided effects amount to $450. A. is f and B. i gain or loss. Required the divi- 
sion of the $450 between them. 

Ex. 2. C. paid in $2400, drew out $750. 
D. If 2100, // 1100. 
B. f 2000, // 120. 

Each partner's share in the gain or loss is equal. At the date of dissolution they are owing 
debts, $2750, and have cash, notes, merchandise, and ^^^%^^f.^\^f,^^^^^ 
balance due each partner. Ans. Due C $2110 ; D. $1460 ; E. $2340. 

' Ex. 3. A. paid in $700, drew out $150. 

B. // 800, // 290. 

C. » 500, '/ 400. 

At the time of their dissolution their cash, merchandise, and other effects amount to 
$1848, and they owe $950. The partners share equally in the gam or loss^ Required the 
balance due each. Ans. Due A. $462.67 ; B. $422.67 ; C. $12.66. 

Ex. 4. F. pays in $3200, draws out $650. 
G. » 1624, // 500. 

H. If 1500, If 1450. 
F. is to be i gain or loss, and G. and H. each h G- and H. retire from the business. 
The cash and merchandise on hand is $3800. Outstanding debts due the firm $2850, upon 

214 



ON COMMERCIAL CALCULATIONS.— PART III. 

which it is agreed to allow 10 per cent, discount for bad debts. The firm owes, on not^s 
md book debts, $3400. Required the sums F. will have to pay G. and H. on retiring — F. 
to become the owner of all the effects of the firm and assuming all their liabilities, as above 
itated. Ans. F. pays G. $934.25, and H. pays F. $139.75. 

Ex. 5. A. was I and B. ^ gain or loss, and at the time of dissolution B. agrees to take 
the whole stock of cash, merchandise, and other effects of the firm, for 83010.79 — A. re- 
tiring from the business. By their accounts it appeared that A. had drawn out $592.82. 
and paid in $1146.78; B. had drawn out $103.27, and paid in $504.92. No interest was 
to be charged on either side. Required the sum B. must pay A. on retiring. 

Ans. $1924.08. 



rOE EEOTIFYING DERANGED DOUBLE ENTET BOOKS. 

Rule. — Close all the impersonal accounts into Profit & Loss ; then place the amount of 
each side of the Profit & Loss in the list of Effects and Liabilities, carrying back to the 
Profit & Loss the difference between the Effects and Liabilities. Close the Profit & Loss 
into the partners' accounts in all respects as in double entry. This transforms the single 
entry Ledger into a double entry one. (See pp. 7, 18, and 19.) 

Ex. 6. N. paid in $2460, drew out $975. 
0. II 2660, // 420. 
P. n 2800, // 1100. 

At the time of dissolution they owe $4500, and have cash, merchandise, and other effects, 
$8840. They also have an expense account open which is debited for $1260. Required 
the balance due each partner, exhibiting the expense account closed, each partner sharing 
equally in the gain or loss. 

Ans. Due N. $1123.34. Due 0. $1878.33. Due P. $1338.33. 

Ex. 7. Q. paid in $2560, drew out $1075. 
R. // 2770, // 520. 

S. II 2890, // 200. 

At the time of settlement the firm owes $4450, and have cash, merchandise, and other 
effects, $8780. Their expense account is debited for $1480. Profit & Loss is Dr. $640, 
and Cr. $1400. Commission account is credited for $1850. The partners are equal in <^in 
or loss. Required the balance due each, and exhibit the impersonal accounts all closed. 

Ans. Due Q. $786.67. Due R. $1551.67. Due S. $1991.66. 

If there be property accounts open, close them By Balance for the value on hand, and 
bring the balance down, and carry the gain or loss to the Profit & Loss account. Then 
proceed as directed in the above Rule. 

Ex. 8. N., 0., and P., partners in business, paid into the concern as follows: 

N. paid in $2464, and drew out $985. 
0. // 2665, ff 424. 

P. n 2880, n 1110. 

At the time of dissolution they owe $4595. They have merchandise on hand valued at 
$4400; cash, $1840; notes and book debts due them, $2218. Their expense account is 
debited for $1286. Their merchandise account is debited for $40050, and credited for 
$39500. Their Profit & Loss account is debited for $1665, and credited for $1580. Each 
partner shares equally in the gain or loss. Required the balance due each at the time of 
dissolution. Ans. Balance due N. $936.67. Due 0. $1698.67. Due P. $1227.66. 

215 



ir 



DUFF^S BOOK-KEEPING. 

Ex. 9. R. and S., partners in business, desire to make a dividend of their gain or loss 
They find their books standing as follows : 



R.'s account is 

S.'s // 

Merchandise 

Cash 

Bills Receivable 

Bills Payable 

Profit & Loss 

Commission 

Interest 

R. Roy 

C. Page 



Dr. 

// 
It 

II 
II 

w 



$6600 

950 

24000 

13000 

16500 

4800 

700 

880 
2200 



Cr. ei5000 

H 12000 

w 12500 on hand, $11000 

w 

K 
W 
M 

n 
u 



9500 
7500 
8300 
2700 
2200 
1400 

800 



Required the Ledger Specification of the book, exhibiting the balance shoet and each 

partner's capital. 

Ans. R.'s capital, S9375. S.'s capital, $12025. Each partner's giin, $975. 

When the capital is paid in at different times, and it is agreed that profit or loss is to be 
divided in proportion to the time it is invested, the gain or loss is found by the preceding 
rules, and divided by the following 

Rule. — Multiply each partner's capital by the time it was employed ; then add all the 
products together and say, as the sum of these products is to each partner's product, so is 
the whole gain to each partner's share of it. 

Ex. 10. K., L., and M., partners in business, commencing 1st January, 1866. 

. $1200 

900 

. 1100 

800 

. 1100 

1400 

200 

1800 

At the time of dissolution, 31st December, 1866, the firm has cash and merchandise in 
hand, $5500; notes and book debts, $4500. They owe $3200. The gain or loss is to be 
divided in proportion to the amount of capital paid in by each partner, and for the time it 
was in the business. Required the balance due each partner. 

Ans. K.'s gain, $112.14. Balance due him, $2512.14. 
L.'s // 98.48. // // 2398.48. 

M.'s // 89.38. u M 1889.38. 



Jan. 




K. paid in 


March 




// // 


June 




II II . . 


Aug. 




// drew out 


Jan. 




L. paid in 


May 
Oct. 




// drew out . 


Jan. 




M. paid in 

II drew out nothing 



Ex. 11. N., 0., and P. partners in business, commencing January 1, 1867. 



Jan. 1, 


N. pays in . . . 


. $600 


March 1, 


H II . . 


800 


July 1, 


// draws out . 


. 200 


Sept. 1, 


// pays in 


600 


Jan. 1, 


0. // . . . 


. 700 


May 1, 


II II . . 


400 


June 1, 


II draws out . 


. 200 


Aug. 1, 


// pays in 


1200 


Jan. 1, 


P. 1/ . . . 


• 1000 


Oct. 1, 


II II , . 


600 



ON COMMERCIAL CALCULATIONS.— PART III. 

At the date of settlement, December 31, 1867, the firm has cash and other effects in hand, 
$7500, and are owing debts to the amount of $3400. Required the division of the gain or 
loss, m proportion to the amount and time each partner's capital was invested, and the net 
balance due each partner. 

Ans. N.'s net loss, $494.83. Balance due him, §1305.17. 
O.'s II 488.79. It I, 1611.21. 

P.'s '/ 416.38. # u 1183.62. 

Ex. 12. X. and Y. partners in business, commencing 1st January, 1867. 



Jan. Ij 


X 


May 1 
June 1 


II 


Sep. 1 
Oct. 1 




Jan. 1 


, Y 


March 1. 


II 


May 1, 
June 1 


II 


Oct. 1 


1 " 



paid in . . . 


. $9000 


• • • • 

drew out . 


2400 

. 1800 


* • • • 

paid in . . . 


2000 
800 


* * • • 

drew out . 


3000 
. 1600 


" • • • • 

paid in . . . 


1200 
. 1500 


" . . . . 


8000 



216 



T. "'^io^l^i^i^l.''^ !o^l^^^ *^^ 31st of December, 1867, their merchandise account was 

VT. ^6^0[){); Or. ^JTOOO. Balance of merchandise on hand, per inventory $10500 Cash 
on hand, $4900. Bills Receivable, $12400. R. Draper owes on account, $2450. They owe 

?? ^^oL'"'' n'' i^t^co^' '^^^ ^""^ ^' ^^^ ^^ ^^^^^'^*' ^^^^- Their Profit & Loss account is 
Dr. $8bb ; Or. $1520. Expense account is Dr. $2420. Commission account is Cr 8*^760 
Interest is Dr. $480; Cr. $950. The gain or loss is to be divided in proportion to'each 
partner s capital, and in proportion to the time it was invested. Required each partner's 
share of the gain or loss, the net balance due each, and a Ledger specification exhibiting the 
closing ot all the accounts and the balance sheet. 

Ans. X.'s share net gain, $6671.73. Net balance due him, $15071 73 
Y.'s // // 2748.27. u h 12448.27. 

Ex. 13. J. Boyd and W. Page, partners in business, dividing the gain or loss equally. 
Page retires from the firm. Their books are kept by single entry ; and the partner's accounts 
stood as follows :--J. Boyd is Dr. for sums withdrawn, $6200 ; Cr. for sums paid in, $SlU0 
W. Page IS Dr. for sums withdrawn, $5100, and Cr. for sums paid in, $7800. Their effects 
consist of 

Cash which Page takes to his account $4400. 

Bills Receivable which he also takes to acct * , ' ^3700.* 

Mdse. on hand which Boyd takes to his acct. . . . . ' . 560o! 

Book debts which he also takes to acct. . . . * , * G30o! 

They owe on notes, which Boyd assumes . . . . ' . 2200 

They owe Book debts, which he assumes . . .*.'.* lioo! 

Required which partner is indebted to the other, and what amount ? 

Ex. 14. A. became embarrassed, and failed in business. His effects were sold off at 
auction, and the net proceeds, $7770, paid over by the auctioneer to the assignee \ was 
indebted as follows, viz : o * 

To B. on notes and book account . . $4800 
'/ C. on account .... 5600 

^ . .. . " ^' " 3600 

J^ach creditor is to receive in proportion to the amount of his claim. The assi<-nee*s com 
mission 18 5 per cent, on the amount paid over to the creditors. Required the amount to ^e 
received by each. Ans. B. receives $2537.14. ' 

C. // 2960. 

D. » 1902.86. 
217 



(I" 



h -f 



1 i 



DUFF'S BOOK-KEEPING. 



ON THE SETTLEMENT OF ACCOUNTS. 

Referring to our directions for making out accounts, (page 114,) we have only to observe 
that, under the date of the semi-annual settlement, spare space is usually left in the Day-Boox 
to insert entries of all omissions that are discovered upon exchanging accounts current. 
These omissions are entered and posted up under date of the last day of the last month s 
business embraced in the account for the semi-annual settlement; but the payment must 
appear under the date upon which it takes place. To enter or post it under a back date 
would derange the cash account. i i n 

In those cases in which we expect to receive the balance of the account rendered betore 
any new transactions take place, it is unnecessary to balance the account on the Ledger until 
we can post up the payment and close the account. But if new transactions take place be- 
tween the parties before the payment of the balance of jthe old account is made, it will 
^'enerally be found more convenient to balance the old account in the Ledger, and bring 
down the balance into new account, in which an entry of the payment will appear when 
made. Those who prefer excluding this old balance and its payment from the next account 
current, can star out the entries on the Ledger, as seen in the following specification, and 
leave the amounts out of the new account current. Loans of money, and other transient 
matters, may be left out of the account current by the same means. (See Pryor's account, 
page 167.) 



Br. 



E. OARVER. 



Or. 



1867. 

Jan. 
Feb. 
Mar. 
June 



June 

July 

Aui:". 

Sep. 

Oct. 

Dec. 



17 

1 

10 

28 



To Merchandise 









// Sundries 



30 
7 
4 

30 

21 
7 

30 



To Bal. ^ acct. rca'd 

// Merchandise 

ir Order to F. Oaks 
// w to K. Kankin 

" Merchandise 

If Order to Winters 

'/ Merchandise 



7 

14 
20 
27 



416 
4200 

780 
1160 



6557 



X 1222 



30 
39 
46 
56 
69 
84 



480 
79 

130 

494 
73 

360 



40 
20 

80 



40 



20 

74 
40 
70 
30 
60 



1867. 

Feb. 

Mar. 
June 



4 

28 
8 



30 



July 1 
17 
20 



Aug. 



// 



By Cash 

Bills Receivable 
Merchandise 
Bal. to new acct. 



By Merchandise 
If Cash on old acct. 
II 31y order per | 

Ryan & Co. j 
II Cash in full for 

old acct. 



! 



15 
19 
20 



416 
4000 

918 
1222 



6557 



40 

80 
20 

40 



34X 



33 



730 

800 

140 



38>' 422 



20 



In business a note is generally taken for such a balance as the above, and the account is 

immediately closed. , ., i i n ^i 

Between houses keeping interest accounts with each other, unless the balance ot the ac- 
count is paid, with a note or money, on presentment, it and the other payments will appear 

in the next account. « i />n i -r. i i ^ • i. 

On pacre 146 will be found a practical exemplification of the Check Book, kept in such a 
manner a^'s to check both sides of the Bank account in the Ledger. We shall now add some 
additional directions for settling with your banker. 

When you get your Pass Book balanced, if it contains any charges for discounts, commis- 
sions, or any entries not in your books, enter them both on your Check Book and Day-Book. 
If all your checks have not been returned, enter the numbers and amounts, in red ink, on the. 
^ 218 



ON COMMERCIAL CALCULATIONS— PART III. 

Dr. side of your Check Book and Ledger, and if all your work is right, the balance in de- 
posit will close the account. Close the account, and bring down the balance on the Cheek 
Book and Ledger in the usual manner, and bring down the outstanding checks in the same 
manner on the Cr. side. To make the matter clearly understood, we subjoin a specification 
of it on a Check Book : 



DATE. 



1867. 

June 
July 

August 

Sept. 



Out, 175 
177 



Sept. 



30 
5 

12 
1 

19 
1 
4 
7 

24 



30 



AMOUNTS DEPOSITED. 


DATE. 








1867. 




Bro. forw'd 


4248 


10 


June 


30 


Deposited 


800 




July 


2 


// 


1300 






5 


// 


400 




Aug. 


2 


// 


1140 




Sept. 


9 


// 


660 


90 




13 


// 


840 


40 


Sept. 


30 


II 


521 


24 






II 


216 


16 






$600. 










970. 


1570 


80 
80 


Sept. 


30 

1 




11196 


Balance 


5095 



NAME. 


No. 


AMOUNT. 


Checks out, 




1100 


40 


R. Hill, 


174 


900 




VV. Wood, 


175 


600 




R. Cox, 


176 


1100 


60 


B. Ray, 


177 


970 




W. Boon, 


178 


1430 




Balance, 




5095 


80 






11196 


80 


Checks out, 


1570 



CHECKS. 



You will understand that the above $5095.80 represents the balance made by the banker 
on your Pass Book; but he made that balance before two of your checks (Nos. 175 and 177) 
were presented ; consequently your books will not show the same balance until the amount 
of these checks is counterentered. This should be done in red in the old, and black in the 
new account. 

I feel confident that no business man will try this form of Cheek Book, and not prefer it 
to the old practice of entering Checks and Deposits all in one column. 

Young accountants will find the advantage of having their Pass Books frequently balanced. 
In a business of any magnitude it should be done monthly — never at longer periods than 
three months. 



EXERCISES IN INVOICES. 

See Forms, page 59. 

Ex. 1. Sold Draper, Son & Co. July 6, 1867 : 1 piece superfine Black Broadcloth. Xo. 
427, 19'' yds. @ $3.62^ 1 end, 10^ yds. Green do. No. 401, @ $3.62*. 1 end Blue do. 
No. 644, 10 yds. @ S3.62i 2 pieces Black do. Nos. 4202 and 4203. 18 and 18'^ yds. (aX 
$3.31^. 4 ends Vesting, 6^, 8^ 9S and 7^ yds. @ $2.50. 2 pieces do. 14 and 16 yds. @ §3. 
Required the invoice, exhibiting the correct amount. Ans. S434 ^Q 

Ex. 2. Sold King, Wood & Co., July 10, 1867, 12 doz. Black Silk Hose, @ 810. 9 dox. 
Ladies' best Black Kid Gloves, @ S7.62i 4 doz. Men's do. @ $9.87i 2 doz. do. out sizes. 
@ $11.50. 6 doz. Men's fancy colored do. @ $9.75. 8 doz. Children's do. @ $4.62*. 
6 doz. do. Thread, @ $2. 12 doz. Men's fancy Silk Half Hose, @ $3.75. 6 doz. do. Black 
Ribbed, @ $4. Required the invoice, exhibiting the correct amount. Ans. $427 63 

219 



^ 



• I 



■M 



' t 



DUFF'S BOOK-KEEPING, 

Ex. 3. Sold George Gains & Co. July 30, 1867 : 10 doz. LyelFs Shovels, @ $7.75. 15 
doz. Bowman's Spades. @ $10.75. 5 doz. do. Cast steel, @ $12.50. 5 boxes Derby Scythe 
Stones, @ 83.50. 20 doz. Grass Scythes, @ $11.50. 12 doz. Corn do. @ $13.50. 3 Mouse- 
hole Anvils, 120, 230, and 330 lbs. @ 12 cts. ^ ft). 3 Birmingham Anvils, 100, 150, and 
250 ft)s, @ 8 cts. "^ ft). Required the invoice and correct amount. Ans. $832.35. 

Ex. 4. Sold Richard Carver & Son, July 31, 1867. 

At 5% discount*— 55 Patent Balances, @ $10. 30 doz. Patent Coffee Mills, @ $5. 
20 doz. Lippincott's Axes, at $10. 25 doz. do. Hatchets, @ $4. 30 doz. do. @ $3.75. 

At 10% discount— 30 Roland's 6-feet Mill Saws, @ $3.75. 25 do. 6^feet Cross-cut 
Saws, @ $3.75. 4 doz. Hand Saws, @ $7.50. 6 doz. do. @ $9. 4 doz. do. @ $6.50. 

The followincr are net— 10 gross Gilt Vest Buttons, of each No. 479, @ $1 ; 566, @ 1.20 ; 
667, @ $1.30 ; 494, @ $1.40 ; 993, @ $1.50 ; 337, @ $1.60. 2 doz. Rodgers' Penknives, 
of each No. 4200, @ $7 ; 4900, @ $8 ; 4300, @ $9 ; 4400, @ 9.50. 12 doz. best balance- 
handled Ivorv Table Knives and Forks, @ $10.50. Required the invoice and amount. 
^ Ans. $1614.49. 

Ex. 5. Sold David Chesman & Co. : 4 hhds. Sugar, each 1146, 1104, 1107, and 1003 
ft)s gross, tare 10%, @ 5 cts. 16 boxes Mould Candles, 56 R)s each, @ 10^ cts. ; boxes 
25 cts. each. 30 boxes Bloom Raisins, @ $3. 40 doz. Corn Brooms, @ $2. 2 chests, 
84 ft)s each, Y. H. Tea, @ 68 cts. 6 half chests do. 240 lbs, @ 65 cts. Required^the 
invoice and amount. -^NS. $734.52. 

Ex. 6. Sold Mason & Sands : 6 Detached Lever Silver Watches, @ $12. 8 do. fe $15. 
5 do. Gold do. @ $40. 5 Duplex Lever Gold do. @ $65. 6 do. do. @ $75. IMoz. Gold 
Spectacles, @ $60 per doz. ^ doz. do. @ $75 per doz. 3 doz. Silver do. @ $10. 2 doz. 
do. (a) $15. 1 doz. Eight-day Clocks, $65. k doz. Church Clocks, @ $80. Required the 
invoice. Ans. $1439.50 



ON COMMERCIAL CALCULATIONS.— PART III. 

Commission and guarantee, 5 per cent. Storage, $66. Required the Journal entry for 
closing the sales ; carrying Hay's net proceeds to his credit. 

Ex. 7. Suppose the above total sales to be $6000. Our half, first cost, the same, ($6000). 
No charges are made. Required the Journal entry to settle the transaction, supposing we 
give Hay our note at 60 days for his share of the net proceeds. 

Ex. 8. Suppose our half, first cost, and the total sales to be equal, as in the last problem 
— $6000 each— and the after charges. Storage, $30 ; Commission and guarantee, 5 per cent. 
Required the Journal entry to close the sales, supposing Hay's net proceeds to be paid him 
in cash. 

Ex. 9. Suppose our half, first cost, $9000. Total sales, only $8000. Commission and 
guarantee, 5 per cent. Storage, $28. Required the Journal entry to close the account, sup- 
posing we give Hay an order on James Carter for his share of the net proceeds. 

Ex. 10. Our half, first cost, was ^11500. Charges posted, $500. Total sales, $18000. 
After charges. Storage, $84 ; Commissi- and guarantee, 5 per cent. The inventory of the 
joint property unsold is $8000.* Required the Journal entry to close the account, sup- 
posing Hay's i net proceeds to be carried to his account. 

Ex. 11. Suppose our half, first cost, $10500. Charges posted, $560. Total sales, $15000. 
After charges. Commission and guarantee, 5 per cent.; Storage, $48. Property on hand, 
$6200. Required the Journal entry for closing the account, paying over Hay his half net 
proceeds in cash. 

Ex. 12. Our half, first cost, was $14800. Charges posted, $150. Total sales, $7800 
Joint property on hand, $13200. After charges, viz. : Storage, $64 ; Commission and guar- 
antee, 5 per cent. Required the Journal entry to close the account, supposing it to include 
our note to Hay for his half net proceeds. 

Ex. 13. Our half, first cost, was $9000. Charges posted, $8800. Commission, 5 per cent. 
Storage, $24. Total sales, $4400. Joint property unsold, $2200. Required the Journal 
entry to close the account and carry Hay's share of the deficiency to his account. 



EXAMINATION ON 

SETTLING CONSIGNMENTS AND JOINT ACCOUNTS. 

See Questions 25 and 26, page 41. 

Ex.1. William Mount's sales are completed. Total sales, $3420. Charges posted, 
$780. After charges, viz. : Commission and guarantee, 5%. Storage, $20. Required the 
Journal entry to close the sales on the Ledger, supposing the net proceeds to be carried to 

Mount's credit. A^^,r.o »^ 

Ex. 2. Gr. Glen's sales are effected to amount of $14040. Charges posted, $1729. Alter 

charges, viz. : Commission and guarantee, 5%. Storage, $56. Required the Journal entry 

for closing the sales, supposing we pay over the net proceeds at the same time in cash. 
Ex. 3. Effected sales for David Carman, $4660. Charges posted, $4440. After charges 

are. Commission, 5 per cent. ; Storage, $36. Required the Journal entry to close the sales. 
Ex. 4. Effected sales of Michael May's goods, $9840. Charges posted, $9910. After 

charges. Commission and guarantee, 5 per cent. ; Storage, $45. Required the Journal entry 

to close the sales. 

Ex. 5. Completed sales of merchandise on joint account with Wm. Hay, each one-half. 
Our first cost was $2400. Total sales, $6400. Charges posted, $800. After charges. Com- 
mission and guarantee, 5 per cent. Storage, $18. Required the Journal entry to close 
the sales, carrying Hay's net proceeds to his account. 

Ex. 6. Completed sales of merchandise on joint account with Wm. Hay, each one-half. 
Our half, first cost, $6000. Total sales, $12600. Charges posted, $490. After charges, 



EXERCISES IN DISCOUNTING BUSINESS PAPER. 

Ex. 1. Received Hall Smith's note for $1200, dated August 31, 1867, at 6 months, en- 
dorsed by James Betts. Discounted the same December 27. Required the note the 
unexpired time, and discount. ' 

Ex. 2. Received J. W. Frost's note for $900, dated October 28, 1867, at 4 months, 
endorsed by W. Summer. Discounted December 13. Required the note, unexpired time' 
and discount. ' 

Ex. 3. Received A. T. Howden's note for $1800, dated October 31, 1867, at 4 months, 
endorsed by D. Bowers. Discounted November 30. Required the note, the unexpired 
time, and discount. 

Ex. 4. Received J. Warden's note for $1266, dated March 31, 1867, at three months, 
endorsed by I. N. Forner. Discounted May 31. Required the unexpired time, and discount' 

Ex. 5. Received R.Manly's note for $624, dated March 30, 1867, at 3 months, endorsed 
by J. Carter. Discounted May 1. Required the note, the unexpired time, and discount. 

^ Ex. 6. Received W. S. Haven's note for $1566, in my favor, dated April 30, 1867, at 
ninety days. Discounted June 26. Required the note, the unexpired time, and discount 

Ex. 7. Received Hay & Wood's note, in my favor, for $1824, dated August 30, 1867. at 
ninety days. Discounted September 30. Required the note, unexpired time, and discount. 

Ex. 8. Received H. Winslow's note, in my favor, for $966, dated December 30, 1867. at 
ninety days. Discounted February 28. Required the note, the unexpired time, and discount 



* Short-extend each discount, and from the marginal addition subtract the discount, full-extending the net amounts. Leea 
than five mills count nothing in the extensions ; five mills and upward count another cent. 

220 



* See Note 4, 1st Co. Sales, page 109. 

221 



DUFF'S BOOK-KEEPING. 

Ex. 9. A Judgment Note.— (January 10, p. 70.) 
S3000.^^. ^^^ York, January 10, 1867. 

Thirty days after date, for value received, I promise to pay to the order of 
P Duff THREE THOUSAND DOLLARS, and in case of non-payment at maturity I hereby 
authorize any attorney in any court in the United States or elsewhere to enter ^P P^^^^^^^^^^ 
upon the same, without stay of execution or benefit of any exemption law, with costs and five 
per cent, attorney's fees for collecting. ^^^^^^ Edwards. 

N0TK.-If the holder wishes to enter judgment on receipt of this note, leave out the clause, " and in case of non-payment 
at maturity." 



1 

2. 



4. 
5. 

6. 

7. 

8. 

9. 
10. 
11. 

12. 

13. 

14. 
15. 

16. 

17. 

18. 

19. 

20. 

21. 

22. 
23. 

24. 

25. 

26. 



FINAL EXAMINATION. 

What is the fundamental rule in Double Entry Book-Kceping ? (See note 1 page 260 
What constitutes the distinction between Single and Double Entry? (Note 1, l^iUs 

HowTthe clpr/dfspJJed of in opening books by Single Entry, in an individual busi- 
ness? (Notel, p. 7.) 

How in Double Entry ? (Notes 1 and 2, Stock acct. p. 66.) 

How is the capital disposed of in opening Partnership Books by Single Entry ? (Note 
o Ti 'r ^ 

How in Double Entry ? (Note 1, Duff's acct. p. 131.) ^ i. .^^ TJnnhlP 

Is there any difference in the rule for conducting personal accounts in Single and Double 
Entry ? (Notes 3 and 4, p. 7, and 3 and 4, p. 26.) „ ^ .^_ . _ , ^.^ 

Is there any difference in recording Orders, Drafts, &c.? (Note 5, p. 7, and Rule 

Whatsis the use of the Cash-Book ? (Note 1, p. 9, and note 1, p. 530 

Where are all cash transactions generally first entcr-d t (Note b p. 06.) 

What is done with the Cash-Book entries as they are transferred to the Day-15ook or 

Journal? (Note 7, p. 530 . ^^ . o rx^ , a rq ^ 

How do we ascertain the balance of money in hand? Cf^o^?'.?' 7->',^ .f. ^. .. 
How are the Ledger titles for money received and paid exhibited? (N. 10 and 11, 

How are entries made on the Day-Book ? (Note 5 p. 24) 

What is meant by posting a Day-Book or Journal? (Note 7, p. ^4.) 

What is the first thing to be done after the Day-Book or Journal is posted ? (Note 4, 

How d^thf partners' acc^oun^ close after the Profit & Loss is closed into them ? (Note 
2 Duff's account, p. 15, and note 4, p. 130.) o /xt . i n j > 

What does the final closing entry of the partners' account represent? (Notel,Gordon s 
loot T) 15; note 1, Balance acct. p. 134.) ,xt , « -r» i 

What wSi it represent if he draws out more than he has in the firm ? (Note 2,Balance 

When'au aect.'has filled up its space, how is it continued to a new page? (Note 2, 

Wnod's acct D. 15, and note 1, p. 102.) 
How ^oiau account 're-open on the same page ? (Note 2, Hay's acct. p. If, and note 

Upon which side of an account is the final closing entry made ? (Sect 1, p. 18.) 
Why iTote the transfers on the face of the Ledger folio ? (Note 6, p. 18, and note 5. 

Whafare^he objec^t^ons to making original entries affecting the personal accounts on 

the Led-er, without a Day-Book entry ? (Note 7, p. 18, and note 3, p. 25) . 
What 1^ the general rule for finding the gain or loss in Single Entry Book-Keeping? 

How isit found in Double Entry ? (Note 4, Profit & Loss acct. p. 350 • 

222 



FINAL EXAMINATION.— PART III. 

27. What balances are brought down in re-opening Single Entry books ? (Note l,p. 190 

28. What is meant by closing an account? (Note 6, p. 23.) 

29. Why not carry Expense, Commission, and Exchange directly to Profit & Loss, and avoid 

opening these accounts? (Note 4, p. 24, and note 3, p. 129.) 

30. What is meant by checking? (Note 2, p. 32.) 

31. What is the use of the Journal ? (6, p. 25.) 

32. How may this book be dispensed with ? (6, p. 25, and 5, p. 91.) 

33. What other title would better express the nature of the Stock account ? (Note 1. p. 26.) 

34. Why drop the ciphers in the cent column ? (Note 8, p. 27.) 

35. How do we show how far the Day-Book is Journalized ? (7, p. 29.) 

36. How do we show how far the Journal is posted into the Ledger ? (6, p. 29.) 

37. What is to be done when the Journal is posted ? (Note 2, p. 32.) 

38. What must be done before attempting to close the Ledger ? (Note 3, p. 32.) 

39. What is the use of the Trial Sheet? (Note 1, p. 36.) 

40. All closing entries for the Balance account are written red, while Profit & Loss, and 

all others, are black. Why is this distinction? (Note 6, Stock acct. p. 33, and 
note 7, Merchandise acct. p. 33.) 

41. What composes the Dr. and Cr. sides of Stock ? (Notes 1 and 2, Stock acct. p. o3.) 

42. What composes the Dr. and Cr. sides of Merchandise ? (Notes 1 and 2. Mdse. acct. 

p. 33.) 

43. How does this account close if all the property be sold ? (Note 3, Mdse. acct. p. 33, 

and Kule 2, p. 99.) 

44. How does it close if part of the property remain in hand ? (Note 5, Mdse. acct. p. 33, 

and Rule 2, p. 99.) 

45. What is an Inventory, and where is it entered ? (1st entry, pp. 59, 61, 137, and 139.) 

46. What composes the Dr. and Cr. sides of Bills Receivable account? (Note 1, Bills Rec. 

acct. p. 33.) 

47. What does the difference between the two sides represent ? 

48. How does this account always close ? 

49. What do the Dr. and Cr. sides of the Cash account represent? (Cash acct. p. 34. ^ 

50. What does the difference between the two sides represent ? 

51. How does this account always close ? 

52. What does the difference between the sides of Bills Payable represent ? (Bills Pay- 

able acct. p. 34.) 

53. How does this account always close ? 

54. If the Dr. side be $4000, and the Cr. side S6000, what does the difference represent ? 

55. How do all personal accounts close ? (Hay's acct. note 2, p. 34.) 

56. How do property accounts close if all or part of the property be on hand ? (Case 2. 

Rule 2, p. 99.) 

57. What do the Dr. and Cr. sides of Profit & Loss exhibit ? (Profit & Loss acct. p. 35.) 

58. What accounts close into it? (Note 2, Profit & Loss, p. 35; Note 1, Bell's acct. p. 

132; Exchange acct. p. 133.) 

59. When is this account closed, and into what account or accounts does it close ? (Note 3. 

Profit & Loss, p. 33; Sect. 4, p. 130; Note 2. Profit & Loss, p. 134.) 

60. What is Expense account Dr. for, and how does it close ? (Note 1, Exchange acct. p. 133.) 

61. What is the Exchange account Dr. and Cr. for, and how does it close ? (Note 1, Exch. 

acct. p. 133.) 

62. What is the Interest account Dr. and Cr. for, and how does it close ? (Note, Interest 

acct. p. 168.) 

63. What is the Suspended List debited for, and how does it close ? (Note 6, p. 130 ; Not«^ 

7, p. 129; Note 1, p. 134) 

64. What is to be done when a suspended account is paid ? (Note 1, Martin's acct. p. 132.) 

65. What do the Dr. and Cr. sides of Balance account represent ? (Balance, p. 35.) 

66. If the Dr. side be S15000, and the Cr. side $10000, what does the difference rej^rcsent ? 

(Note 4, Balance acct. p. 35.) 

67. If the Drs. bo $8000, and Crs. $12000, what does the difference represent? (Note 3, 

Balance acct. p. 35.) 

223 



',i 



f 



68. 

69. 
70. 
71. 

72. 
73. 

74. 
75. 
76. 

77. 
78. 

79. 

80. 
81. 
82. 

83. 
84. 
85. 

86, 

87. 
88. 
89. 

90. 
91. 

92. 

93. 

94. 

95. 

96. 

97. 

98. 

99. 
100. 
101. 
102. 
103. 
104. 
105. 
106. 
107. 

108. 
109. 
110. 



DUFF'S BOOK-KEEPING. 

What precaution is necessary in closing this account ? (Balance acct. p. 35, and note 

4, p. 130.) 
Where should this account he made ? (Sect. 1, p. 19.) 
What is meant by re-opening a Ledger? (Note 1, p. 113.) 

Suppose there be not sufficient space under the old account to re-open ? (Note 1, p. 113.) 
How are the daily average sales ascertained for any given time ? (Note 14, p. 36.) 
How is the average gain per cent, ascertained upon sales of Merchandise when all is sold ? 

(Note 15, p. 36.) 
How if part of the Merchandise remain on hand ? 

What entry is made of an invoice of a consignment received? (Note 21, p. 41.) 
What is the rule for keeping account of consignments received ? (Eule 10, p. 41.) 
When the property is sold, how do we find the net proceeds? (Note 25, p. 41.) 
If the owner of this consignment draw on you on account of these sales, what account do 

you debit for his draft? (Note 29, p. 41.) 
How do you keep account of property which you consign to others for sale on your own 

account? (Rule 11, p. 41.) 
If you draw on the consignee on account of a consignment? (Note 31, p. 41.) 
What are Joint Accounts ? (Note 1, p. 42.) 
What title does the manager of a joint speculation give the account in his books? 

(Note 4, p. 42.) 
What title do the silent partners use in their books ? (Note 9, p. 42.) 
What is the general rule for conducting joint accounts as manager ? (Rule 12, p. 43.) 
How do the other partners keep an account of their investments in the speculation ( 

(Note 1, 2d Co. Shipment to London, p. Ill, and note 9, p. 42.) 
How does the manager find the net proceeds when all the property is sold? (Note 1, 

p. 43.) 
How if part of the property remains on hand ? (Note 4, 1st Co. Sales, p. 109.) 
How does the manager find his net gain or loss ? (Note 13, p. 43, and note 3, p. 80.) 
What is the rule for determining the maturity of an acceptance or note having its 

running time in days ? (Note 1, p. 45.) 
When the running time is months? (Note 3, p. 45.) 
When will one day's advance in the date of a note give three or four days' advance in 

the time of payment? (Note 1, p. 46.) 
When will one day's advance in the date give two days' advance in the maturity ? (Note 

2, p. 46.) 
Upon what occasions may three or four notes, dated on different days, having the same 

running time in months, all become due on the same day? (Note 1, p. 47.) 
When will two notes, dated on different days, having the same running time in months, 

become due on the same day ? (Note 2, p. 47.) 
What ought to be done with notes which remain in hand over due ? (Note 4. p. 52,.) 
How do we enter a note on the Bill Book when received ? (Note 1, p. 49.) 
How when passed away ? (Note 2, p. 49.) 
What is the use of the Invoice Book ? (Note 1, p. 58.) 
Where is the first entry of an Invoice ? (Note 3, p. 58.) 
What particulars of an Invoice is required in the Day Book ? (Note 3, p. 58.) 
What is the use of the Sales Book ? (Note 1, p. 62.) 

When this book is not kept, where are the particulars of the sales entered ? (N. 3, p. 62.) 
How is the Commission Sales Book kept? (Note 1, p. 65.) 
What composes its Dr. and Cr. sides ? (Notes 2 and 3, p. 65.) 
Where do the entries pass from this book ? (Sect. 3, p. 66.) 

How is the net proceeds found, and how is it disposed of when found ? (N. 2, p. 66.) 
How do you enter a re-consignment on the Commission Sales Book ? (Entry Feb. 12, 

Commission Sales Book, p. 67.) 
Repeat the rule for equating time on account of sales. (Rule, p. 68.) 
Repeat the rule for the Compound Equation. (Rule, p. 116.) 
Where do we obtain the materials for opening a new set of books in continuation of 

old ones ? (Note 1, p. 69.) 

224 



111. 

112. 
113. 
114. 
115. 
116. 
117. 
118. 

119. 
120. 
121. 
122. 
123. 
124. 
125. 
126. 
127. 
128. 
129. 
130. 
131. 
132. 
133. 
134. 



FINAL EXAMINATION.— PART III. 

How can a new set of books be opened from old ones without passing the contents 

through the Day Book and Journal ? (Sect. 3. p. 19.) 
What is the general rule for correcting errors in the Ledger ? (Notes 2 and 5. p. 98. 
What is the general rule for correcting errors in the Journal ? (Notes 10 and 2, p. 98. 
How are errors corrected in the Day Book ? (Notes 11 and 2, p. 98.) 
What precaution is necessary in indexing accounts? (Note 1. p. 100.) 
Where do we obtain the particulars for an account current? (Note 3, p. 114.) 
Where do we obtain the particulars for an account of sales? (Note 1, p. 117.) 
How are the Cash and Merchandise accounts posted from the six-column Day-Book or 

Journal? (Note 7, p. 124, and note 2, p. 161.) 
How can the Merchandise Drs. be posted direct from the Invoice Book? (N. 4. p. 139. 
How may the Merchandise Crs. be posted from the Sales Book ? (Note 2, p. 142.; 
What is the use of the Private Ledger? (Note 1, p. 173.) 
What accounts are kept in it? (Pages 173 and 174.) 
What is the rule for settling interest on partners' capital ? (Page 180.) 
What is the rule for casting 1 and 10 per cent, commission ? (Rule, p. 199.) 
How are the intermediate rates found ? 

What is the rule for finding interest at 6 per cent, for months? (Rule, p. 199.) 
What is the shortest rule for finding it for 60 days ? (Rule, p. 200.) 
What for 6 days ? 

What if the rate be over or under 6 per cent. ? 

What is the mercantile rule for settling interest on running accounts ? (Rule. p. 201 .) 
What rule is adopted in the United States Courts ? (Rule, p. 201.) 
What is the rule for working storage equations ? (Rule, p. 208.) 
What is the rule for ascertaining general average? (Rule, p. 211.) 
Repeat the rule for dividing profits in proportion to time and amount of capital, t Rule. 

p. 216.) 



225 



% 



\ 



l! 



Ir 



DUFFS BOOK-KEEPING. 



PART IV. 



k 



JOINT STOCK ACCOUNTS, 



ILLUSTRATED IN A COMPLETE SET OF 



NATIONAL BANK BOOKS: 



AND ONE SET OF 



RA^ILRO^D BOOKS. 



TO WHICH IS ADDED A FULL SET OF 



PRIVATE BANKER'S BOOKS. 



227 



\ 



II 



INTRODUCTORY REMARKS. 



- 



■ 



In the following set of National Bank Books, we present all tlie practical details of the 
first six months' business, from the preliminary proceedings of the originators of the com- 
pany, down to the declaration of the first dividend. The exercises are such as will guide 
the accountant in opening, conducting, and closing Joint Stock Books of any kind. 

We have given explanatory notes wherever we deemed them necessary for the learner's 
information ; but for the rules and principles of the science he must refer to the early part 
of the work, where he will find them minutely explained, and where every one ought to 
commence the study of it. 

In the transactions recorded in Foreign Bills of Exchange we have to acknowledge our 
obligations to Messrs. James G. King & Sons, Bankers of New York, for valuable inform- 
ation promptly and courteously afforded us in matters upon which we could obtain no 
information from other Banks, as but few Joint Stock Banks in New York do any direct 
business with foreign countries. 

We have arranged the forms of the following set for posting by three different methods, 



VIZ. 



First. — By Journalizing the contents of the General Cash Book. 

Second.— By constructing the General Cash Book so as to admit of direct posting from 
it to the Ledger. 

Third. — We have arranged the Ledger Titles upon the Receiving and Paying Teller's 
Cash Books in such form as to admit of direct daily posting from these books to the Ledger 
without the intervention of either a Journal or General Cash Book, introducing the greatest 
abridgment that the process will admit of. 



MINUTE BOOK. 



CITY NATIONAL BANK. 



DECEMBER, 1866. 



1. This book is a journal of the preliminary proceedings of the Company. We have 
not continued it after the general business of the Bank commenced. After that date there 
is but little to record but the date and names of the members present at each meeting. 
The book is usually in the charge of the Cashier. 



229 



For obvious reasons, we have made no entries of the present premiums upon Gold. 

228 



I< 



K" 



M 



I 



tt 



DUFF'S BOOK-KEEPING— PART IV. 



MINUTES OF THE BOARD OF DIRECTORS OF 

THE CITY NATIONAL BANK. 

FIRST MEETING. 

The provisional Board met at the office of John Ward, Esq., December 10th, 
1866. 

PRESENT. 



John Ward, 
James Harper, 
Wm. Major, 



Wm. B. Archer, 
Wm. Hay, 
J. C. Baker. 



Mr. Ward, the acting President, stated that Article V. of the Articles of Asso- 
ciation directs us to call a meeting of the Stockholders for the purpose of electing 
three additional Directors, to complete the Board, within ten days of the date when 
the subscription to the Capital Stock was completed. As all the stock has been 
subscribed, he would offer the following resolution : — * 

Resolved, That the subscribers to the Capital Stock of the City National Bank 
be notified that an election of three Directors, to complete this Board, will be held 
at this office on the 20th day of December, 1866, between the hours of 12 M. and 
4 P.M. 

Adjourned to meet on December 20th. CHAS. P. DUFF, 

Acting Cashier. 

MINUTES OF SECOND MEETING. 
Office of John Ward, Esq., Thursday, December 20th, 1866. 

PRESENT. 

John Ward, Wm. B. Archer, 

J. C. Baker, James Harper, 

Wm. Hay, Wm. Major. 

Mr. Ward, acting President, laid before the meeting the following report of 
the inspectors of elections. 

The undersigned, inspectors of the election of Directors for the City National 

Bank, hereby certify that the following statement is the true and correct number 

* of votes given for the three Directors elected this day at the office of John Ward, 

Esq., by the Stockholders of the said Bank, to complete the Board of Directors for 

the same for the year 1867 : — 

Thomas Mitchell, 4400 votes. 
Robert Lenox, 4391 
Robert Banks, 3998 

R. C. Root, 

Richard Irvin, J> Inspectors of Election. 
Thos. B. Smith, 
Sworn before me this 20th day of December, 1866. 

Thos. Archer, Alderman. 
230 



C( 



(I 



NATIONAL BANK ACCOUNTS. 

Mr. Harper then offered the following resolution, which was adopted : 

Resolved, That Thomas Mitchell, Robert Lenox, and Robert Banks, are dulv 

elected members of this Board, and the acting Cashier is hereby directed to notif\' 

the said parties of their election. 

Mr. Hay then proposed the following resolution, which was adopted : 

Resolved, That the Board adjourns to meet at this office on Monday, December 

24th, 1866, at 2 p.m., for the purpose of electing a President and Cashier. 
Adjourned. 

CHAS. P. DUFF, 

Acting Cashier. 

MINUTES OF THE THIRD MEETING. 

At the office of John Ward, Esq., Monday, December 24th, 1866. 



Wm. B. Archer, 
Wm. Hay, 
J. C. Baker, 

Robert Lenox, 



present. 
John Ward, 

James Harper, 

Wm. Major, 

Thomas Mitchell, 

Robert Banks. 

Mr. Ward stated that the Board had met for the purpose of electing Bank 
Officers for the year 1867. For the office of President of the Board he understood 
there were but two candidates, Mr. Archer and himself. He declined saying anv 
thing of his own qualifications; but of his friend Mr. Archer, he felt it' his duty 
to say that his long, successful, and honorable career among us as a merchant 
eminently fitted him for this responsible office. 

Mr. Hay arose and stated that he fully agreed with Mr. Ward in his high 
opinion of his friend Mr. Archer ; but he thought the members of the Board would 
agree with him in the opinion that both the candidates were eminently fitted for 
the office. 

Mr. Lenox then moved that the Board proceed with the election. And for this 
purpose he nominated, as Judges, Robert Banks and Thomas Mitchell, who were 
accepted. 

The Directors voted, as usual, by ballot, and the Judges reported 

For John Ward, five votes. For Wm. B. Archer, four votes. 

Mr. Banks then announced to the Board that Mr. John Ward was dulv elected 
President of the City National Bank for the year 1867. 

The Board next proceeded to elect the Cashier. 

Mr. Harper nominated Mr. Chas. P. Duff. 

Mr. Lenox nominated Mr. Wm. Draper. 

Upon the ballot Mr. Duff received six votes ; Mr. Draper received three votes. 

Whereupon Mr. Banks announced that Mr. Chas. P. Duff was duly elected 
Cashier of the City National Bank. 

The President suggested the appointment of a committee of three to procure a 
suitable building for the Bank. 

231 



Ill 



I 



DUFF'S BOOK-KEEPING— PART IV. 

Mr. Ward nominated Mr. Archer. 

Mr. Harper nominated Mr. Hay. 

Mr. Lenox nominated Mr. Banks. 

When the following resolution was read and adopted : — 

Resolved, That Messrs. W.B.Archer, Wm. Hay, and Robert Banks, are hereby 
appointed a committee to procure a suitable building for a Bank, and report upon 
the same at the next meeting of the Board. 

The President next recommended the appointment of a committee to draft By- 
Laws to define the duties and regulate the powers of the Officers and Directors. 

Mr. Major nominated Mr. J. C. Baker. 

Mr. Mitchell nominated Mr. Robert Lenox. 

Mr. Hay nominated Mr. Jas. Harper. 

Whereupon the following resolution was read and adopted : — 

Resolved, That Messrs. J. C. Baker, Robert Lenox, and James Harper, are 
hereby appointed a committee to draft By-Laws for the government of the Officers 
and Directors of this Association. 

The meeting adjourned to meet on Monday, December 31st, 1866. 

CHAS. P. DUFF, 
* Cashier. 

MINUTES OF THE FOURTH MEETING. 
At the office of John Ward, Esq., Monday, December 31st, 1866. 

PRESENT. 

The President, 

Wm. B. Archer, J. C. Baker, 

James Harper, Thos. Mitchell, 

Wm. Hay, Robert Lenox, 

Wm. Major, Robert Banks. 

After reading the minutes of the last meeting, Mr. Archer, chairman of the 
Committee on Bank Building, reported, That, not being able to find a building that 
they can recommend for purchasing, the committee advise the Board to lease the 
premises No. 41 Wall Street, recently occupied as a Banking House by Messrs. 
Greenwood, Cox & Co. Immediate possession can be obtained at a rent of $4000 
per annum, and the committee are of the opinion that $1400 will cover all 
expenses necessary to prepare the building for our business. 

Mr. Mitchell then offered the following resolution, which was adopted : — 

Resolved, That the President is hereby authorized to lease the premises No. 
41 Wall Street, for a term of five years from the first day of January, 1867, for 
the use of this Association, and to contract for such repairs and improvements upon 
the same as he may deem necessary to fit them for our Bank, and that the expenses 
of all such repairs and improvements, together with the rents of the said premises, 
during the said lease, be paid out of the funds of the Bank. 

Mr. Lenox proposed the following, which was also adopted :— 

232 



NATIONAL BANK ACCOUNTS. 

Resolved, That the Cashier is authorized to purchase the necessary furniture, 
books, stationery, and such other articles as he and the President shall deem 
necessary to prepare the Bank for business. 

The President then stated that about $300,000 of the Capital Stock had been 
paid in. Would it not be proper to invest a part of this amount in United States 
Bonds? 

Whereupon Mr. Harper moved the following resolution : — 

Resolved, That the President is hereby authorized to invest in United States 
Bonds such amount of the funds of this Association, now in hand, as he may deem 
expedient. Adopted. 

Mr. Banks then proposed the following resolution, which was also adopted : — 

Resolved, That the third instalment of 50 per cent, of the Capital Stock of 
this Association shall be due and payable on the 10th day of January next ensuing, 
and that the Cashier notify the subscribers of the same. 

Mr. J. C. Baker, from the Committee on By-Laws, presented their report, w hich 
was read, adopted, and ordered to be engrossed in a suitable book for reference by 
the Directors and Officers. 

Mr. Banks stated that the repairs of the Banking rooms could no doubt be so 
far completed as to admit of holding their next meeting in them ; Therefore, 

Resolved, That the Board shall meet at their Bank, No. 41 Wall Street, on the 

5th day of January next, at 12 M., for the purpose of appointing clerks, <S:c. Passed. 

Adjourned. 

CHAS. P. DUFF, 

Cashier. 

MINUTES OF THE FIFTH MEETING. 

At the City National Bank, Saturday, January 5th, 1867. 

PRESENT. 

The President, 
Wm. B. Archer, J. C. Baker, 

James Harper, Thomas Mitchell, 

Wm. Hay, Robert Lenox, 

Wm. Major, Robert Banks. 

The minutes of last meeting were read. 

The President stated that he had leased the premises in which we are now met, 
for the use of the Bank, for five years from the 1st instant, for the annual rent of 
$4000, and that he had contracted with B. Carpenter & Co. for the necessary repairs 
and alterations for $1400. He also stated that he had invested $200,000 of the 
Bank funds in United States Five-Twenty Bonds, bearing interest at 6 per cent., 
which he had deposited with the Comptroller of the Currency of the United States, 
at Washington, as security for the issues of the Bank, as required by the "National 
Currency Act,'' which now authorizes us to commence business, which he would 
recommend the Board to announce at an early day ; Therefore, 

233 



iMi 




i 



DUFF'S BOOK-KEEPING— PART IT. 

Resolved, That the Cashier give public notice that the City National Bank 
will be open for business on the 10th inst. 

Mr. Archer moved that the Board now consider the appointment of General 
Book-keeper, Teller, &c. There were a number of applicants for each office, but 
he hoped the Board would deem it their duty to allow no consideration to influence 
these appointments but that of capability. 

After considering the credentials of the different applicants, the following 
appointments were agreed upon : — 

For General Book-keeper, W. J. Parker. 

For First Teller, (Paying,) J. J. Jones. 

For Second Teller, (Receiving,) Geo. Dexter. 

For Messenger, Simon Parry. 

The Cashier was directed to apprize the parties of their appointment, and to 
request them to execute the necessary bonds, with sureties, to lodge with the 
President on or before the 10th instant. 

These appointments were deemed sufficient for the business of the Bank at its 
commencement. Others are left until increased business requires them. 

Adjourned to meet 10th instant. 

CHAS. P. DUFF, 

Cashier. 

MINUTES OF THE SIXTH MEETING. 

At the City National Bank, Thursday, January 10th, 1867. 

PRESENT. 

* 

The President, 
Wm. B. Archer, J. C. Baker, 

James Harper, Thomas Mitchell, 

Wm. Hay, Robert Lenox, 

Wm. Major, Robert Banks. 

The minutes of the last meeting were read. 

The President stated that the officers appointed at the last meeting had executed 
and lodged with him the necessary bonds, with sureties, and had entered upon 
their duties ; and the Comptroller of the Currency having authorized us to com- 
mence business, the Bank was accordingly opened this morning. 

The Offering Book was then laid before the Board, and such notes as were 
approved were passed. 

Adjourned. CHAS. P. DUFF, 

Cashier, 
234 



' 1 



NATIONAL BANK ACCOUNTS. 

BY-LAWS OF THE CITY NATIONAL BANK, 

ADOPTED DECEMBER 31, 1866. 

Article I. — The Bank shall be open for general business every weekday fnim 
10 AM till 3 P.M., except holidays and such days as the Government appoint 
as public fast-days. And the Board of Directors shall meet for the transac- 
tion of their regular business every weekday from 12 M. to 1 p.m. 

Article II. — The President, when present, shall preside at all the meetings of 
the Board. In case of his absence, a majority of the members present shall 
elect a President pro tem. And at all meetings of the Board the President 
or Cashier, with four Directors, shall constitute a quorum for the transaction 
of business. 

Article III. — There shall be a standing committee of Two, called the Examining 
Committee, who shall inspect the assets of the Bank, compare them with the 
books, and make quarterly reports of the same to the Board. These commit- 
tees are elected as follows. The President nominates a member of the Board. 
If this member is approved, he nominates a second, who, if approved, in turn 
nominates a third : the yeas and nays being taken on each nomination. 

Article TV. — A book of minutes shall be kept of the meetings of the Board, 
recording 

The names of each member present, 

The resolutions adopted, ^ 

And other general business of the Board. 

Article Y. — The President, on entering upon his duties, must subscribe to the 
following oath : — " I, the undersigned, do solemnly swear (or affirm) that I 
will truly and faithfully administer and discharge all the duties, trusts, and 
obligations devolving upon me as President elect of the City National Bank 
of New York, and deliver the same to the custody of my successor." 

Article YI. — The Cashier and Clerks employed by the Board must give such 
bonds and sureties, for the faithful performance of their several duties, as shall 
be satisfactory to the Board; these bonds to remain in the custody of the 
President. 

Article YII. — All business transactions of the Board, the votes and opinions 
of members, the business of the customers of the Bank, with the state of their 
accounts, shall be held in the strictest confidence, and never disclosed out of 
the Bank, unless required in a court of justice. 

Article YIII. — The Cashier shall be required to lay before the Board, at their 
meetings, all such statements of the affairs of the Bank as they require, in 
reference to 
Its Liabilities and Assets. 

235 



2 



! 



n 



I 



DUFFS BOOK-KEEPING— PART IV. 

The Liabilities as principals and endorsers of customers. 

Discounted Notes on hand. 

Discounted Notes under protest. 

Overdrafts of Depositors. 

Notes of the Bank in circulation. 

Deposits on hand. 

Specie on hand. 

To register all notes put in circulation. 

To check the Tellers' Books and balances. 

To report promptly all delinquencies connected with the Bank. 

Akticle IX.— The Cashier shall pay all the expenses of the Bank, and report 
the same to the Board monthly. 

Article X. — In granting loans to individuals on collateral security, the vote 
of the members present shall decide the acceptance or rejection of the appli- 
cation. If there be a tie, the President may give the casting vote. When he 
deems the security unexceptionable, the President may discount business- 
paper between the meetings of the Board, to an amount not exceeding $10,000 ; 
and he may purchase Foreign Bills of Exchange of undoubted security, to an 
amount not exceeding $50,000 ; but he must report all such transactions to 
the Directors at their next meeting. No note or draft will be accepted for 
discount for less than $100, and none for collection for less than $50. 

Article XI. — The Board may at any time reconsider any question or resolution 
before it, unless the motion to reconsider be negatived by the President. 

Article XII. — When any Director shall cease to own, in his own right. Ten 
Shares of the Capital Stock of the Bank, he shall vacate his seat at the Board, 
and a majority of the remaining Directors shall elect his successor. 

Article XIII.— No Teller, Clerk, or Book-keeper shall be allowed to keep an 
account of deposit with the Bank. 

Article XIV.— The following salaries shall be paid the officers and employees 
of the Bank for the year 1867, payable quarterly, viz.: — 

To the President $2000 per annum. 

To the Cashier 1800 

To the General Book-keeper 1 500 " 

To the Receiving Teller 1000 " 

To the Paying Teller 1000 " 

To the Messenger 600 " 

$7,900 

Article XV. — The foregoing By-Laws may be amended by a vote of two-thirds 
of the entire Board, upon one week's previous notice of the motion. 

Adopted, by resolution of the Board of Directors, December 31, 1866. 

236 



ARTICLES OF ASSOCIATIOK 



CITY J^ATIOJ^AL BAJSTK. 



1866. 



287 



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\i 



DUFFS BOOK-KEEPING— PART IV. 



NATIONAL BANK ACCOUNTS. 



f 



t 



If 



fii 




ARTICLES OF ASSOCIATION OF THE 

CITY NATIONAL BANK OF NEW YORK. 

Know all men by these presents, that we who have hereunto subscribed our 
names and set our seals do hereby associate ourselves for the purpose of conducting 
the business of Banking, under the Act of Congress of the United States to provide 
for a National Currency, secured by pledge of United States Stocks, approved 
June 3d, 1864. And we hereby bind ourselves, our heirs, administrators, and 
assigns, to comply with all the regulations and obligations of the following articles, 
hereby solemnly ratifying and confirming the same as our Articles of Association. 

Aeticle T. — Our Association shall be called the City National Bank, and 
shall be situated in the City of New York, with a Capital Stock of Six 
Hundred Thousand Dollars, divided into Six Thousand Shares of One Hun- 
dred Dollars each, agreeably to Section 12 of said Act of Congress. 

Article II. — The first instalment of Thirty Dollars on each share of the 
above-named Capital Stock shall be due and payable within five days after 
signing these articles, and the second instalment of Twenty Dollars shall 
be due and payable within twenty days after subscribing to these articles. 
The dates of payment for the balance of the Capital Stock to be named by the 
Board of Directors, to be chosen as hereinafter prescribed, for the direction 
and management of our Bank. All instalments shall be payable in lawful 
money of the United States, or such funds as are readily convertible into the 
same. 

Article III. — The powers and privileges conferred upon our Association by the 
aforesaid Act of Congress, authorize us to delegate the management of our 
business to Nine Directors, of whom a majority shall constitute a quorum, who 
are further authorized to appoint a President, Cashier, and Clerks, and to 
determine their salaries and their duties ; and also to enact and adopt such 
By-Laws, not at variance with the aforesaid Act of Congress, or with any of 
these Articles, as they shall deem necessary for the regulation of the business 
of the Bank. 

Article IV. — The Board of Directors shall be composed exclusively of citizens 
of the United States ; and, agreeably to Section 9 of the aforesaid Act, no 
person shall be eligible to a seat in the Board who does not hold in his own 
name at least Ten Shares of the Capital Stock ; and we hereby nominate and 
appoint the following parties as a Provisional Board of Directors, leaving the 
remaining three seats to be filled by the election of the Stockholders : — 

John Ward, Wm. B. Archer, 

James Harper, Wm. Hay, 

Wm. Major, J. C. Baker. 

And we further appoint the said John Ward President pro tem., and Chas. 
P. Duff Cashier pro tem. 

2.38 



Article Y. — An election to complete the Board of Directors shall be called by 
our said President pro tem. within ten days after the subscription to our 
Capital Stock is completed ; and there shall be an annual election of Directors 
for our Association held in the City of New York on the first Monday in 
January ; ten days' previous notice of said election to be published in two 
of the city daily papers. Each Stockholder shall be entitled to one vote on 
each share of stock held by him. 

Article VI. — At their first meeting, or as soon after as practicable, the Directors 
shall elect by ballot one of their number as President of this Association, who 
shall be, and who is hereby, acknowledged as the official head of this Asso- 
ciation ; who, when present, shall preside at all meetings of the Board, and 
who is hereby authorized and empowered, with the consent of the said Board, 
to purchase and convey all such Real Estate as it may be lawful for this 
Company to hold ; to buy, sell, and transfer stocks, bonds, and mortgages, or 
other property or evidences of debt, held as security or belonging to this 
Company, and to receive all rents, dividends, and incomes arising from the 
same ; to invest the funds of the Company in United States Bonds, and to 
deposit the same with the Comptroller of the United States Currency, in the 
City of Washington, as security for the notes put in circulation by this Bank, 
and to sign all its notes so put in circulation ; to sue and be sued for values 
claimed by or of this Company ; to grant and sign Powers of Attornev for 
special purposes ; and to perform all other acts consistent with these Articles 
of Association, and the aforesaid Act of Congress, that may be beneficial to 
this Association. And in case of the unavoidable absence of the President, the 
Board of Directors are hereby empowered to elect a President pro tem., who 
is authorized to perform all the aforesaid duties until the President can resume 
his office, or until a new President is elected. 

Article YII. — The Directors shall appoint the Cashier, who shall keep the 
minutes of the meetings of the Board, countersign and register all notes issued, 
examine the books of the Tellers' accounts, and conduct the business of 
the Bank agreeably to the instructions of the Board, furnishing them at all 
times with such information as they may require. 

Article YIII.— The Board of Directors shall require the Cashier, Tellers, and 
. all other employees, before entering on their duties, to give bonds, with sureties 
satisfactory to the President, for the faithful discharge of all trusts and duties 
required of them. 

Article IX. — The Board of Directors are authorized to appoint, from time to 
time, committees composed of their own body, and to empower them to 
transact special matters of business, and to revoke such appointments at 
pleasure. They are also authorized to appoint three of the Stockholders to 
serve as Inspectors and Judges to conduct the annual elections of Directors. 
But no Director can be eligible to the office of judge of elections. And we 

239 



DUFF'S BOOK-KEEPING— PART IV. 



NATIONAL BANK ACCOUNTS. 



;. » 



hereby nominate and appoint R. C. Root, Richard Irvin, and Thos. B. 
Smith inspectors of our first election of Directors. 

Article X.— The Cashier pro tern, shall grant receipts to the subscribers of the 
Capital Stock for each instalment as paid in, such receipts to be countersigned 
by the President pro tern. No Certificate of Stock shall be granted to any 
subscriber until the whole amount of the subscription is paid in. 

Article XI.— All Certificates of Stock shall be signed by the Cashier and the 
President, and all transfers of stock shall invest the new holders with all the 
rights and privileges, interests and obligations, conferred by these Articles; and 
each subscriber to these Articles, in consideration of the number of shares set 
aside for him or her, hereby holds himself or herself bound by these Articles 
for the full amount of such shares of Capital Stock as are written opposite his 
or her name, hereby binding themselves to make punctual payment of all 
instalments due on the same by these Articles, or by subsequent orders of the 
Board of Directors, and to pay six per cent, interest upon any instalments 
that may remain overdue ; and when any instalment is withheld for sixty 
days, the Directors are hereby empowered and authorized to transfer, forfeit, 
and sell for the benefit of this Association such share or shares, with all pay- 
jnents made on the same, agreeably to Section 15 of the aforesaid Act of 
Congress, and to erase the name or names representing the same from the 
books of the Company. 

Article XII.— The Directors are authorized to pay all expenses of this Associa- 
tion out of the funds of the same. And for the general information of the 
Stockholders, they shall make out and submit to their inspection semi-annual 
statements of the Assets, Liabilities, Expenditures, and Profits, verified by the 
Cashier and President ; and the Directors shall declare and pay the Stock- 
holders such dividends as they may deem proper out of the net profits of the 
Company. 

Article XIII. — This Association shall commence business in the month of 
January in the year of our Lord One Thousand Eight Hundred and Sixty- 
Seven, and shall have succession by the name designated in these Articles for 
twenty years, agreeably to Section 8 of the aforesaid Act of Congress, unless 
sooner dissolved by the act of the Shareholders. 

Article XIV.— The Directors of this Association may at any time propose 
amendments to these Articles, upon giving thirty days' notice, with a copy of 
the proposed amendments, to each Stockholder ; and upon the representatives 
of two-thirds of the Capital Stock signing their written consent to the same, 
then the said amendments shall become as binding on the Company as the 

Articles above written and now adopted. 

240 



We, the undersigned, subscribe to the foregoing Articles of Association of the City 
National Bank op New York, and for the Capital Stock of the same set opposite our 
names and seals at the date of subscription. 



Date. 



1866. 
Dec. 



10 



Number of Shares. 



I subscribe for Five Hundred Shares, 
I subscribe for Five Hundred Shares, 
I subscribe for One Hundred Shares, 
I subscribe for One Hundred Shares, 
I subscribe for One Hundred Shares, 
I subscribe for Two Hundred Shares, 
We subscribe for Three Hundred Shares 
I subscribe for Fifty Shares, . . . 
I subscribe for One Hundred Shares, 
I subscribe for Two Thousand Shares, 
I subscribe for One Hundred Shres, 
I subscribe for One Hundred Shares, 
E subscribe for Twenty Shares, . . 
I subscribe for Thirty Shares, . . . 
I subscribe for One Hundred Shares, 
[ subscribe for Six Hundred Shares, 
We subscribe for One Hundred Shares, 
[ subscribe for Five Hundred Shares, 
[ subscribe for One Hundred Shares, 
[ subscribe for One Hundred Shares, 
I subscribe for Three Hundred Shares, 



Shares. 

500 
500 
100 
100 
100 
200 
300 
50 
100 
2000 
100 
ICO 
20 
30 
100 
600 
100 
500 
100 
100 
300 




John Ward, . . . 
Jas. Harper, . . 
jTames AV. Cox, . . 

tC. Baker, . . . 
m. H. Duff, . . . 
Wm. Hay, . . . 
; Barclay, Hope & Co., 
'. larriet Lenox, 
'. iobert Lenox, . . 
' ^. B. Archer, . . 
; I. C. Root, .... 

: \ Dufi; .... 

' ^m. Draper, . . 
, ames R. Compton, 
jiamuel Warren, . 
'. lobert Banks, . . 
'. lichard Irvin & Co., 
' ?hos. Mitchell, . . 
' ?hos. B. Smith, . . 
t ames Harper, . . 
' Nm. Major, . . . 



6000 



Seal, '. ^evr York. 
Seal, '. !f ew York. 
Seal, : "Jew York. 
Seal, Jersey City. 
Seal, Pittsburgh, Pa- 
Seal, Brooklyn. 
Seal, '. ^ew York. 
Seal, '. ^ew York. 
Seal, ; sew York 
Seal, : few York. 
Seal, ; sew York. 
Seal, '. 'ittsburgh, Pa. 
Seal, : Juffalo, N. Y. 
Seal, ; ^ockport, N.Y. 
Seal, '. Brooklyn. 
Seal, . ersey City. 
Seal, ! few York. 
Seal, ] few York. 
Seal, ] few York. 
Seal, ] few York. 
Seal, Brooklyn. 



In witness to the foregoing subscriptions and signatures, we, the undersigned, hcreanto 
set our hands and seals, in the City of New York, this tenth day of December, AD. 1866. 

John Ward, President pro tem. Seal. 

Chas. p. Duff, Cashier pro tem. Seal. 

241 



i i 



[Up 



ii 



INSTALMENT LIST. 



. INSTALMENT No. L 

Subscribers to the Capital Stock of the City National Bank. Thirty Dollars per 
share due December 1st to 15thj 1866. Agreeably to Articles of Association, Article II. 



INSTALMENT LIST. 



INSTALMENT No. 2. * 

Subscribers to the Capital Stock of the City National Bank. Twenty Dollars per 
share due December 21st to 31st, 1866. Agreeably to Articles of Association, Article II. 



Wheh Due. Whex Rec*©, 



Subscribers' Names. 



Dec. 



6 

6 

6 

6 

6 

6 

6 

10 

10 

10 

10 

15 

15 

15 

15 

15 

15 

15 

15 

15 

15 



Dec. 



Ill 
5 

5 

5 

5 

6 

9 
10 
10 
10 
10 
15 
15 
15 
15 
15 
15 
15 
18 
18 
18 



Barclay, Hope & Co 
John Ward, . 
James Harper, . 
Jas. W. Cox, . 
J. C. Baker, . . 
Wm. H. Duff, . 
Wra. Hay, 
Harriet Lenox, 
Robert Lenox, . 
Wm. B. Archer, 
R. C. Root, . . 
P. Duff, . . . 
Wm. Draper, 
Jas. R. Compton, 
Samuel Warren, 
Robert Banks, 
Richard Irvin & Co 
Thos. Mitchell, 
Thos. B. Smith. . 
James Harper, 
Wm. Major, . . 

Interest, 



Dec. 1 Ent'd Cash Book 1 



Shakxs. 



300 
500 
500 
100 
100 
100 
200 
50 
100 
20Q0 
100 
100 
20 
30 
100 
600 
100 
500 
100 
100 
300 



5 


II 


II 


II 




6 


H 


H 


If 




9 


II 


II 


II 




10 


U 


II 


II 




15 


II 


II 


II 




18 


n 


II 


II 






9 


M 


II 





Instalment. 



9000; 

15000 

15000 ; 
3000 ! 
3000 j 
3000 I 
6000 
1500 
3000 

60000 

3000 

3000 

600 

900 

3000 

18000 
3000 

15000 
3000 
3000 
9000 



Int. 



3 



150 
150 
4 50 



Amount Rec'd. 



9000 
15000 
15000 

3000 

3000 

3000 

6003 

1500 

3000 
60000 

3000 

3000 
600 
900 

3000 
18000 

3000 
15000 

3001 150 

3001 50 



When Due. When Reo'd 



1866. 

Dec. 



9004 



6000 i 180000 ! 10 50 



10 



u 



50 



180010 50 



180010 50 



9000 
36000 

3000 

6000 

67500 

43500 

15000 

10 50 



212 



180010 50 



21 
21 
21 
21 
21 
21 
21 
25 
25 
25 
25 
30 
30 
30 
30 
30 
30 
30 
30 
30 
30 



1866. 

Dec. 19 
19 
19 

,21 
21 
121 

27 
25 
25 
!28 
25 
28 
28 
28 
30 
31 
30 
30 
30 
30 
30 



Subscribers' Names. 



Shares. 



John Ward, . 
James Harper, 
Jas. W. Cox, . 
J. C. Baker, 
Wm. H. Duff, 
Wm. Hay, . . 
Barclay, Hope & Co 
Harriet Lenox, 
Robert Lenox, . 
Wm. B. Archer, 
R. C. Root, . . 
P. Duff, . . . 
Wm. Draper, 
Jas. R. Compton, 
Samuel Warren, 
Robert Banks, 
Richard Irvin & Co., 
Thomas Mitchell, 
Thos. B. Smith, . 
James Harper, 
Wm. Major, . . 



500 

500 

100 

100 

100 

200 

300 

50 

100 

2000 

100 

100 

20 

30 

100 

600 

100 

500 

100 

100 

1 800 

6000 



Interest, 



Dec. 19 Ent'd Cash Book 1 

1 

i. 

1 
1 

1, 
1 



21 


// 


II 


II 


25 


// 


n 


n 


27 


// 


II 


II 


28 


II 


II 


II 


30 


II 




II 


31 


II 




II 




If 




II 



Instalment. 



10000 

10000 , 
2000 ! 
2000 i 
2000 
4000 
6000 
1000 ! 
2000 

40000 1 

2000 

2000 

400 

600 

2000 

12000 
2000 

10000 • 
2000 
2000 I 
6000 

120000 

28^ 

120028 



Int. 



20 



Amouitt Rxc'd. 

10000 
10000 

2000 

2000 

2000 

4000 

6006 

1000 

2000 
40020 

2000 

2000 
400 
600 

2000 
12002 

2000 
10000 

2000 

2000 

6000 



28 



120028 



22000 

8000 

5000 

6000 

43000 

24000 

12000 

28 


i 
1 


120028 



243 



r 



) ; 



INSTALMENT LIST. 



INSTALMENT No. 3. 

Subsciibers to the Capital Stock of the City National Bank Fifty Dollars per share 
due January 10th, 1867. Agreeably to resolution of the Board of Directors, passed 
December 31st, 1866. 



WmH. Do. 



1887. 

Jan. 110 
10 
LO 
10 
LO 
10 
LO 
LO 
[0 
LO 
LO 

to 

10 
LO 
LO 
LO 
LO 
LO 
LO 
10 




1S67. 

-Tan. 



9 

9 

9 

9 

h9 

, 9 

19 

19 

9 

10 

10 

10 

10 

10 

10 

10 

10 

10 

10 

10 



John Ward, . 
James Harper, 
Jas. W. Cox, 
J. C. Baker, . 
W. H. Duff, . . 
Wm. Hay, . . 
Barclay, Hope & Co 
|Harriet Lenox, 
iRobert Lenox, 
jWm. B. Archer, 
iR. C. Root, . 
[P. Duff, . . . 
IWm. Draper, . . 
jjas. R. Compton,. 
Samuel Warren, 
Robert Banks, 
Richard Irvin & Co 
Thomas Mitchell, 
Thomas B. Smith, . 
Wm. Major, . . 



500 

' 600 

100 

100 

1 100 

200 

300 

50 

100 

2000 

100 

100 

20 

30 

100 

600 

100 

500 

100 

300 



25000 

30000 

5000 

5000 

5000 

10000 

15000 

2500 

5000 

100000 

5000 

5000 

1000 

1500 

5000 

i 30000 

5000 

25000 

5000 

15000 



16000 ; 1300000 



Jan. 9 Ent'd Cash Book 1 
10 It n 'I \ 



102500 
197500 



300000 



25000 

30000 
5000 
5000 
5000 

10000 

15000 
2500 
5000 
100000 
5000 
5000 
1000 
1500 
5000 

30000 
5000 

25000 
5000 

15000 

300000 




i 









§• 



I 

I- 

ss 
?: 

go 

D P 
o P 

° E 






s. 



C 

m 
M 



o 

i 




^ 







i'^r 






I 









-^^ -4^ B" 5 .«^ f 



244 



245 





t 
I I' 



1 



m ill 



■ 




a 






4- 





,/4-^ 



— ^-w 



(»^ 



I 



I 



I 



^ o 

ft? '- « 

9 



-I 



1 



n 






CO 

CO 



^ 






Q ! 



^ ^ 



§ 



CJ 



O lUit 



I!- 




y\ 



246 



/\ 






^ 

>» 

'to 









I 



^ 






T 
» 

1, 



s< 



vi/ 








01 
OD 



a 
PQ 



•5 

0) 

•a 
o 

» 



o 

X 

o 

•a 



o 

9 
« 

is 



« 



o 



«5 



I 



o 

DC 



I 

I 



o 









'-^ 






« 

V 

^ 

.§ 






CITY NATIONAL BANK, 

GENERAL CASH-BOOK, 



1867. 



1. All receipts and payments preceding the commencement of general business are first 
recorded in this book. Afterwards it is made up from the Receiving and Paying Tellers' 
Cash Books. In a large business it ought to be journalized and balanced daily, and its 
balance must agree with the balance of money in the vault, and in the Tellers' hands, con- 
sisting of 

Notes of other Banks, 

Checks on other Banks, 

Treasury Notes, 

Specie, and 

Our own Notes in hand, used as money. 

2. In our Private Banker's accounts, we shall exhibit this book posted direct to the 
General Ledger, which may be done in any banking business. But we think the Journal 
will make this set more easily understood by the student. When it is to be posted direct 
to the Ledger, the form of our Private Banker's book is preferable. See p. 352. 



247 



t Dr. 



Oi^SH 



1866. 

Dec. 



Iter 
Jan. 



Jan. 



1 
5 

6 
9 

10 
15 
18 



Capital Stock 



Mar. 



19 
21 
2 

27| 
28i 
30! 
31 

9 
lOl 



a 

« 
// 
n 

H 



w 
w 
f 
ir 
» 
n 



Received on First Instalment 



II 
n 
II 

H 



Discount and Interest 
Capital Stock 



// 
u 
II 



II 
II 
u 

If 



Discount and Interest 
Capital Stock 



IT 
« 

on past due Instalments 
Second Instalment 

» 

ft 

v 

n If 

on past due Instalments 
Third Instalment 



u 



u 



lOJj Depositors 

Iron City National Bank 
1st National Bank, Chicago 
1st Nat. Bank New Orleans 
Circulation 



Balance bro't down 

Per Receiving: Teller's C. 



B. 



Feb. 15 



Balance bro't down 



Circulation 


Per J 


ieceiv 


mgl 


eiic 


Bills discounted 


• ' 


H 




II 


Depositors 


» 


n 




n 


Exchange 


H 


n 




9 



16 



Balance 


\ bro't down 


Circulation Per Receiving 


' Teller's C. B 


Bills Discounted " 


u 


u 


Depositors " 


w 


» 


1st Nat. Bank, New Orleans n 


» 


M 


1st Nat. Bank, Chicago " 


» 


It 


Iron City Nat. Bank " 


» 


ff 



9000 
36000 
3000 
6000 
67500 
43500 
15000 
10 
22000 
8000 
5000 
6000 
43000 
24000 
12000 
28 
102500 
197500 



50 



600038; 50 



399238 

12300 

1000 

1500 

500 

160000 



50 



5745381 50 



218471' 84 

232000 

7900 

21164 

136 



479671 



84 



3530711 84 

880001 
18600; 

6800; 

12001 

1600: 

1200, 



1868. 

Dec. 



im. 
Jan. 



Jan. 



Feb. 



Mar. 



10 



10 



15! 



470471! 84 



.ACCOUNT. 



Cb. 1 



Expense 



II 



United States Bonds 



Bank Furniture 



P'd Root, Anthony & Co., for Sta- 
tionery 

P'd Times & Tribune, Advertising 
// for 200 5/20 Bonds of SIOOO 
each 

P'd Ashley & Son's bill 

Balance to n/a 



Depositors 

1st Nat. Bank, Chicago 
1st n II New Orleans 
Foreign Bills of Exchange 
Exchans:e 

United States Bonds u n w 

Balance to n/a 



Per Paying Teller's C. B. 
n 

H 
It 



U 



It 



Depositors 

United States Bonds 

Iron City Nat. Bank 

1st Nat. Bank, Chicago 

1st Nat. Bank. New Orients 

E:: change 



Per Paying Teller's C. B. 

M » It 

It II H 

II II U 

II II tl 

1/ II n 

Balance to n/a 



16 I Depositors Per Paying Teller's C. B. 

1st Nat. Bank, Chicago if ii it 

1st Nat. Bank, New Orleans n /' w 

Iron City Nat. Bank // // n 

II II tt 



Foreign Bills of Exchange 
Exchange 



// // n 

Balance carried forward 



150 

50 

200000 

600 

i 



600038 


50 


7900 




500 




1000 




44444 


44 


2222 


22 


300000 




1 21-iTl 


84 


5T4538 


50 


,„ , ' 




18600 




100000 




3564 




792 




352« 




116 






84 


479671 


84 


10300 




1188 




2352 




1782 




9.7.7.79 


22 


1189 


11 


1 


51 


470471 


84 



248 



249 



I 



I 

I 



■I 
It .■ 





2 Dr. 



Oi^SH 



1867. 

Apr. 



15 



Bills Discounted 

Depositors 

1st Nat. Bank, New Orleans 

Iron City Nat. Bank 

1st Nat. Bank, Chicago 

Baring Bros. & Co. 

Exchange 



Bal. bro't forward 

Per Receivinor Teller's C. B. 



u 

tt 
u 

M 
H 
II 



If 

n 
» 



II 
If 
n 
u 

H 

n 



Certified Check unpaid ' 



May 14 





Balance bro't down 


Depositors 


Per Receiving Tell 


Discount and Interest 


W » II 


Baring Bros. & Co. 


» » n 


Exchange 


WW If 


Iron City Nat. Bank 


WW II 


Bills Discounted 


WW If 


Ist Nat. Bank, Chicago 


WW w 


1st Nat. Bank, Boston 


WW w 



June 12 Depositors 

Baring Bros. & Co. 
Exchange 
Profit and Loss 
Discount and Interest 



Balance bro't down 

Per Receiving Teller's C. B. 



w 




w 




w 




w 


u 



u 
n 

w 
w 



Balance bro't down 



431438 
7200 
51100 
8000 
2000 
4000 
26666 

2666 

ROO 



51 



67 
67 



533871 85 



500606 85 

12788 

18000 

40000 

4112 

2 

5700 

6900 

2394 



590502' 85 



576799 10 
18984 
20003 50 
2116; 
2000' 
204 I 94 



620107 54 



603847 ' 54 



.ACCOUI^T. 



1867. 

Apr. 



May 



15 



14 



Circulation 

Foreign Bills of Exchange 

Exchange 

Depositors 

Expense 



Per Paying Teller's C. B. 



u y 

II tt 

If If 

ff tt 

Baliuicc to n/a 



June 12 



i Depositors 
Iron City Nat. Bank 
1st Nat. Bank, Chicago 
Foreign Bills of Exchange 



Exchange 



Per Paying Teller's C. B. 

// // If 

II tt tt 

II II tt 

II n tt 

Balance to i:/ii 



* Checks are certified with the understjinding that they are to be immediately paid 
into another bank, which will present them promptly for payment. If the holder 
uses his check for a distant remittance, if unpaid at the time of balancing this book 
it must be re-entered, as in this case. 



Cr.« 



500 

20000 
1290 
8500 
2975 





Certified Check out* 




533871 85 




800 


Depositors 


Per Paying Teller's C. 


B. 


4903 75 


Iron City Nat. Bank 


II , II If 




1980 


Bank of Montreal 


tt tt tt 




3564 


1st Nat. Bank, Boston 


tt u u 




2394 


Exchange 


tt tt tt 




62 




Baliiucc to u/a 




5::::- 10 



590502 85 



8300 
2772 



2970 

2000 

218 

cor. -47 54 




250 



251 



I 



II • 



I 



^ 







t ;, 



a* 



FOKM OF A POWER OF ATTORNEY TO TRANSFER STOCK. 

'0r HhIm Sl^iCrfibi^ii' /if^^m cmd^€^^e a^ia aMctn^ Uiepoca 

/lue ana /au/a/ a^dneu fci 

name ^o /ian<^ui ^o 



dialed €n meWa/uYa/C7€Cc^o/mr 

CITY NATXaNAX^ BANK OF l^ll^'SSf YORK. 

^7©ifneJ50 ^anc/ an</ dea/ da aay, ^. /o 



WiYneM Aieden^. 






SEAL 



LETTER OF AUTHORITY TO SIGN BUSINESS PAPER. 

New York, June 30, 1867. 
Sir :_I have to-day authorized my Book-keeper, Mr. F. L. Rainbow, to sign my name 
to Promissory Notes, Checlis, ami Drarts; also, in like manner, to use nay signal ii'^e iii 
accepting Orders, Drafts, and Bills of Exchange ; also, in endorsing Promissory Notes, 

Checks, Drafts, and Bills of Exchange. 

Very respectfully, yours, 

W. B. ARCHER. 

To the Cashier City National Bank, 

New York. 






The above authority must, in every case, be strictly observed in form and extent, other- 
wise the validity of the act may be endangered. 



JOURNAL, 



CITY NATIONAL BANK, 



JANUARY, 1867. 



Although banks do not generally keep this book, we retain it to enable the uninitiated 
to understand more readily the process of arranging the contents of so many books for the 
General Ledger. When this book is kept, the Oeneral Ledger receives no entries from 
any other book. 



253 



H 



I 



252 



I 






^\ 




NEW YORK, December 31, 1866. 



February 15, 1867. 



1 
1 

3 

3^ 

1 



1 
1 

1 
1 

2 



Cash, Dr. To Sundries, per Gen'l. C. B. 1 
To Capital Stock . - . • 

// Discount & Interest . 



Tf 



300038 50 



Expense, Dr., 

To Cash, per Gen'l. C. B. 1 

Jan. 10, 1867. = 

Cash, Dr.. per Gen'l. C. B. 1 
To Capital Stock . . . • 
n 

Sundries, Dr. To Cash, per Gen'l. C. B. 1 

United States Bonds 

Bank Furniture 



4 

4 
4 

1 
2 
4 
4 
2 
3 

2 
2 
3 
3 

1 
3 

1 
1 

4 
2 



Cash, Dr. To Sundries, per Gen'l. C. B. 1 
To Depositors . . • • • 
ft Iron City Nat. Bank . . • . 
// First Nat. Bank, Chicago 
It First Nat. Bank, New Orleans . 



Sundries, Dr. To Cash, per Gen'l. C. B. 1 
Depositors . • • * 

First Nat. Bank, Chicago . 
First Nat. Bank, New Orleans 
Foreign Bills of Exchange . 



Exchange 



n 



Bills Discounted, Dr. To Sundries, D. B. 1 
To Depositors . . • • • 

;/ Discount & Interest 

n Exchange . • • 

w 

Cash, Dr.. per Gen'l. C B. 1 

To Circulation 



United States Bonds, Dr. . 
To Cash, per Gen'l. C. B. 1 



200 



300000 



200000 
600 

15300 



300000 
38 50 



200 



300000 
200600 



Bmi^gB^others & Co., Dr. . • • -,; ,, ' j^ 
To Foreign Bills of Exchange for ^^own Brothers & 



Co., on G. Peabody 



£10000 St'g. 



Feb. 15. 



1 
3 
2 
2 
3 

1 
2 
1 
4 
4 
4 
3 



Cash. Dr. To Sundries, per Gen'l. C. B. 1 

To Circulation 

; « Bills Discounted 
ff Depositors 



// Exchange . 



// 



Sundries, Dr. To Cash, per Gen'l. C.B. 1 

Depositors 

U. S. Bonds . • • • • 

Iron City Nat. Bank 

First Nat. Bank, Chicago . 

First Nat. Bank, New Orleans . 

Exchange 

254 



7900 
500 
1000 
44444 44 
2222 , 22 

12100 



160000 



300000 



44444 44 



261200 



il 



18600 

100000 

3564 

792 

3528 

116 



12300 I 
1000 
1500 
500 

56066 ' 66 



11958 87 
89 13 
52 



160000 



300000 



44444 U 



232000 

7900 

21164 

136 

126600 



2 
2 
3 
3 



1 
3 
2 
2 
4 
4 
4 

1 
2 
4 
4 
4 
2 
3 

2 
2 
3 

4 
2 



Bills Discounted, Dr. To Sundries, per D. B. 1 . 
To Depositors ...... 

// Discount & Interest 

// Exchange . . . . 

^-■= March 16. -^ = 



14400 



Cash, Dr. To Sundries, per Gen'l. C. B. 1 
To Circulation ..... 
// Bills Discounted . . • . 

// Depositors ..... 
// First Nat. Bank, New Orleans 
// First Nat. Bank, Chicago 
// Iron City Nat. Bank . 



Sundries, Dr. To Cash, per Gen^l. C. B. 1 

Depositors ..... 

First Nat. Bank, Chicago 

First Nat. Bank, New Orleans . 

Iron City Nat. Bank .... 

Foreign Bills of Exchange 

Exchange ...... 



117400 



10300 
1188 
2352 

1782 
22222 



22 



Bills Discounted, Dr. To Sundries, per D. B. 1 
To Depositors ...... 

// Discount & Interest .... 

It 



1189 jll 

I 
7200 



Baring Bros. & Co., Dr. ..... 

To Foreign Bills of Exchange, for Pollock & Gilmore, 



on R. Rankin & Co. 



£5000 St'g. 



1 
2 
2 
4 
4 
4 
4 
3 

1 
3 
2 
3 
2 
3 

2 
2 
3 
3 

4 
2 



April 15. 



Cash, Dr. To Sundries, per Gen'l. C. B. 2 
To Bills Discounted ... 

// Depositors ..... 

// First Nat. Bank, New Orleans 

// First Nat. Bank, Chicago 

// Iron City Nat. Bank . 

// Baring Bros. & Co. 

ft Exchange ...... 



Sundries, Dr. To Cash, per Gen'l. C. B. 2 
Circulation ..... 

Foreign Bills of Exchange . 
Exchange ..... 

Depositors ...... 

Expense ...... 



ft 



Bills Discounted, Dr. To Sundries, D.B. 1 
To Depositors 

ft Discount & Interest . . ' . 

// Exchange 




// 



Baring Brothers and Co., Dr 

To Foreign Bills of Exchange, for Betts & Turner, on 
Bold & Starkey .... £4500 St'g. 



255 



22222 22 



101633 



34 



500 

20000 
1290 
8500 
2975 

7300 



20000 



14267 60 
66 ,40 
66 



S8000 
18600 
6800 
1200 
1600 
1200 



39033 33 



7164 
36 



22222 22 



7200 
51100 

8000 

4000 

2000 
26666 67 

2666 67 



33265 



7253 12 
34 88 
12 



20000 



i 
f 



I 



i! 



'ii 



ii 



Ja 



J 



May 14, 1867. 



ash, Dr. To Sundries, per Gen'l. C. B. 2 
To Depositors . . . • • 
Discount & Interest . 



Baring Bros. & Co. 



Exchange . 

Iron City Bank 

Bills Discounted 

First Nat. Bank, Chicago 

First Nat. Bank, Boston 



Sundries, Dr. To Cash, per Gen'l. C. B. 2 
Depositors . . . • • 
Iron City Nat. Bank .... 
Bank of Montreal .... 
■ First Nat. Bank, Boston 



Exchange 



Bills Discounted, Dr. To Sundries, per D. 
To Depositors .... 

tt Discount & Interest 



B. 2 



// Exchange 



89896 



June 12. 



Baring Brothers & Co., Dr 

To Foreign Bills of Exchange, for Dyer & Morgan, on 
Swainson & Willis .... £450 St'g. 



4903 75 
1980 
3564 
2394 
62 



6200 



Cash, Dr. To Sundries, per Gen'l. C. B. 2 
To Depositors 

w Baring Brothers & Co. . 

w Exchange . . . . • 

If Profit & Loss .... 

It Discount & Interest . 



2000 



43308 44 



Sundries, Dr. To Cash, per Gen'l. C. B. 2 
Depositors ..... 
Iron City Nat. Bank .... 
First Nat. Bank, Chicago 
Foreign Bills of Exchange . 
Exchange . . . 



Bills Discounted, Dr. To Sundries. D. B. 2 

To Depositors 

// Discount & Interest 



» Exchange 



8300 
2772 
2970 
2000 
218 

9200 



256 



12788 

18000 

40000 

4112 

2 

5700 

6900 

2394 



12903 75 



6062 30 
87 70 
50 



2000 



: 18984 
20003 50 
2116 
2000 
204 04 

16260 



im 



9014 
167 ^3 
18 



ii 



STOCK LEDGER, 

CITY NATIONAL BANK, 






1867. 



1. This book records nothing but the number of Shares of the Capital Stock of the 
Company held by each shareholder, and the instalments that he has paid upon them. Th. 
entries are first obtained from the Instalment List. When transfers afterwards take place. 
they are posted to this Ledger from the Transfer Book. 

2. The aggregate credits of this Ledger must always agree with the credit of the 
" Capital Stock" account in the General Ledger. 

3. Keeping these accounts in alphabetical order enables us more easily to keep them so 
on the Dividend List. 

^ 257 






5 



II 




e ; 



(•i 



.1 

■1, 

i 



1 De. 


WM. B. 












ARCHER 


• 


Ce. 










ShB. 






1866. 

Dec 

1867. 

Jan. 


10 
28 
10 


1st Instalment 
2d // 
3d // 


Shs. : 
2000 


60000 

40000 

,100000 

1 






J. C. 




BAKER. 
















1866u 
Dec. 

1867. 

Jan. 


5 

21 
9 

1 


1st Instalment 
2d // 
3d // 


100 


■ 

3000 
2000 
5000 




BARCLAY, 




HOPE & CO. 














18fl& 

Dec. 

1867. 

Jan. 


1 

27 

9 


1st Instalment 
2d // 
3d u 


300 


9000 
.6000 
16000 

i 




ROBT. 




BANKS. 








( 


1 
I 






1866. 

Dec. 

1867. 

Jan. 


15 

31 
10 


«. — 

1st Instalment 
2d // 
3d // 


600 


18000 
12000 
30000 






J. w. 




COX. 










1 


t 


i 

1 

1 


1866u 

Dec 

1867. 

Jan. 


5 

19 
9 


! 

1st Instalment 
2d // 
3d // 


100 


3000 
2000 
5000 






J. R 




COMPTON. 




1867. 

Mar. 


16 


G, R. Duncan 


( 

10 


1000 


1 

1 


1866. 

Dec 

1867. 
Jan. 


15 

28 
10 


l.st Instalment 
2d // 
3d II 


30 


900 

600 

t500 






WILLI A] 


u 






DRAPER. 






1866. 

Apr. 


15 G. K. Duncan 

1 


1. ' 
20 2000 

i 

2000 

I: — 


1866. 

Dec 

1867. 

Jan. 

1 

1 


15 

28 
10 


1st Instalment 
2d // 
3d // 


.20 


600 

400 

1000 

2000 








i 




GEO. B. 




DUNCAN. 








] 


1 




1 


1 1867. 

J Mar. 
Apr. 


16 
15 


J. R. Compton 
Wni. Draper 


10 
20 


1000 
2000 

! 





258 



Dr 



P. 









1866. 










Dec. 


15 








1867. 


28 








, Jan. 


10 



WM. H. 



JAMES 



WM. 



RICHARD 



HARRIET 



DUPP. 



1st Instalment 
2d // 

3d II 



Gft. Si 



DUPP. 



She. 




100 


3000 




: 2000 




! 5000. 


1 


! 1 



1866. 

Dec 

1867. 

Jan. 



6 ' Ist Instalment 
21 * 2d // 
9 3d H 



100 



HARPER. 



' 1866. 

Dec. 



1867. 

Jan. 



HAY. 



1866. 

Dec. 

1867. 

Jan. 



IRVIN & CO. 



I 



1966. I 

Dec. 15 1st Instalment 

1867. 30 2d 

Jan. I 10 3d 



100 



LENOX. 



ROBERT 



LENOX. 



V 



\ 



1866. 

Dec 

1867. 

Jan. 



10 1st Instalment 
25 2d 
9 3d 



// 



V 



100 



Sfc 



259 



3000 
2000 
5000 



5 


1st Instalment 


500 


15000 


18 


1st 


II 


100 


3000 


19 


2d 


It 




1 10000 


30 


2d 


II 




2000 


9 


3d 


If 




30000 



9 


1st Instalment 


200 


6000 


21 


2d II 




4000 


9 

1 


3d '1 




10000 



3000 
2000 
5000 




3000 
2000 
5000 



>i^ 



- ' <l 




S Bk 



THOS. 



WM. 



A* C« 



T. B. 



JOHN 



MITCHELL. 



Or. 



1866. I 

Dec. i 15 Ist Instalment 

1867. 30 2d 



Jan. 10 



3d 



Sh8. 
500 



15000 
10000 
25000 



MAJOR. 



1866. 


; 






Dec. 


18 1st Instalment 


300 


9000 


1867. 


30 2d '/ 




6000 


Jan. 


10 


3d '/ 




15000 



ROOT. 



1866. I 

Dec. 10 ' 1st Instalment 

1867. 25 2d If 
Jan. 10 3d '/ 



100 



3000 
2000 
5000 



SMITH. 









1 1866. 










Dec. 


18 








1867. 


30 








, Jan. 


10 



Ist Instalment 
2d '/ 

3d u 



100 



3000 
2000 
5000 



WARD. 













i 


1866. 
1867. 

Jan. 

1 


5 

19 

9 


1st Instalment 
2d '' 
3d " 


500 

1 


15000 
10000 
25000 




SAMUEL 


WARREN. 






1 
t 
1 
1 










uu 


15 
30 
10 


1st Instalment 
2d // 
3d ft 


i 
100 


1 

1 3000 
3000 
6000 

• 





- I 



RECEIYING TELLER'S CASH BOOK, 

CITY NATIONAL BANK, 



JANUARY, 1867. 

Upon the left page are entered all amounts for the General Ledger; upon the right 
page, all amounts for the Depositors' Ledger, into which each Deposit is posted as indicated 
by the postmarks. We have passed the amounts of both sides into the General Cash Book. 
By comparing this book with the General Ledger, the titles of the accounts will be found 
so distinctly arranged upon it as to admit of direct posting without a Journal or General 
Cash Book. 



261 



2G0 



I, 



i 



RECEIPTS FOR GENERAL LEDGER. New York, 



Iron City Nat. Bank. Eec'd Check on Ist Nat. Bk., N.Y. 

Ist Nat. Bk., Chicago. " Draft on 9th Nat. Bk., ^ .Y. 

Ist Nat. Bk., New Orleans, f Draft on Chemical Nat. Bk. 
Circulation, '/ of U. S. Comptroller, per B. N. E. 1 

Circulation, • » w » 




1000 

1500 

500 

80000 

80000 



163000 



February 



t- ■ 



< 



' It 



Bills Disoonnted, 



Circulation, 
Exchange, 



Eec'd Gregg & Hall, No. 1 
Mount, Joy & Co. 2 
G. W; Leeds, 3 

Hay & Wood, 4 

Bateman & Hill, 6 



2000 
1000 
1800 
1600 
1600 



// of U. S. Comptroller, B. N. E. 1 200000 
» f It H j! 32000 

tt for sundry exchanges, 



7900 



232000 



136 




January 10, 1867. FOR DEPOSIT LEDGER. 



l! E. Irvin&Co. 



Dep'd Smith on Chemical Bk. 

Draft on O. H. Bliss, Chicago 
Bank Notes 



1 E. Lenox 

I ; E. C. Eoot, Anthony & Co. 

2 John Ward 



2 Harriet Lenox 

2 Harper & Bros. 

3 ! Barclay, Hope & Co. 

3 DufF Brothers & Co. 



J. Carver 



Eyan & Dale 



// Bank Notes 

// Cluley on 9th Nat. Bk. 
// Bank Notes 

// Bank Notes 

Moore on 1st Nat. Bank 
Lawson on 4th Nat. Bank 

u Bank Notes 

w Draft on F. J. Herron, New Orleans 
Bank Notes 

» Bank Notes 

// Coin 

Eobb on 3d Nat. Bk. 

// Bank Notes 
u » u 

G. C. B. 1 



200 
500 
800 



1500 





1200 


600 
1000 


1600 


1000 
400 
400 


1800 




1000 


1000 
1000 


2000 




800 
1000 


500 
500 






600 

800 




12300 



15, 1867. 



1 1 E. C. Eoot, Anthony & Co. Dep'd Bank Notes 
1 E. Irvin & Co. 



1 E. Lenox 

3 j Duff Bros. & Co. 
5 A. B. Hunter 

2 I Harper & Brothers 

4 Eyan & Dale 



2 I Harper & Bros. 



E. Irvin & Co. 



3 ' Barclay, Hope & Co. 
1 I E. Irvin & Co. 

3 ! Jas. Carver 

4 } Lyon & Haven 



ir 

It 
a 
tt 
tt 



Brown on 1st Nat. Bk. 
Bank Notes 



1100 
700 



// 
ff 
// 
tt 



tt 
tt 
tt 
tt 



II Coll. on Bates & Bell, Pittsburgh . 
Less Exchange \ 

Coll. on W. S. Hunter, Chicago 
Less Exchange 



Coll. on J. Kane, New Orleans 

Less Exchange 

Coll. Baker & Fox, City 

'/ Joel Post, // 

'/ E. S. Davis, ii 

II J. B. Marks, ii 

G. C. B. 1 



1600 
48 



900 

1800 



- 


1400 




, 1000 




1 400 




2500 




3528 


3600 




72 




-■ - ■ — 


7M 


800 




16 





155S 



1600 
2400 
1200 
2100 

21164 



IM 



RECEIPTS FOR GENERAL LEDGER. 



Marcii 



Bills Discounted 



'* ' 






I 



Ist Nat. Bk., New Orleans 
Ist Nat. Bk., Chicago 
Iron City Nat. Bk. 
Circulation 



Eec'd Patterson & Wild, No. 5 

J. W. Loring 7 

W. Page 8 

Hay & Wood 9 

R. Bruce 10 

Hunter & Co. 11 

J. Morton 12 

J. Carver 13 

Draft on Ryan & Dale 
Draft on R. C. Root, Anthony & Co. 
I Draft on Harper & Bros. 

of U. S. Comptroller, B. N. R. 1 
M tt a 

w WW 

W WW 

W IT » 

Q. C. B. 1 



1200 


1 
1 


3000 


3600 


2400 ' 


1800 


3300 




1200 


1 


2100 


1 


1 



18600 



40000 
20000 
10000 
10000 
8000 



1200 

1600 

1200 

88000 



110600 



April 



Bills Discounted 



Ist Nat. Bk,, New Orleans 
Iron City Nat. Bank 
Baring Bros. & Co. 

Ist Nat. Bk., Chicago 
Exchange 



Eec'd Day & Martin, No. 14 . 

Hart & Bowman, 16 

Duncan, Dunlap & Co., 16 
Geo. Wilde, 17 

our Draft No. 1, favor W. B. Morgan 
II II 2, // Kramer &Rjihm 

// Bill // 1, at 60 days' sight 

favor R. Banks & Co. £6000 St'g 

J. Astley & Co. 

10 % prem. for our Bill No. 1 



1500 

2400 

900 

2400 



7200 



II 
II 



II 
u 



G. 0. B. 2 



8000 
2000 



26666 '67 
4000 
2666 67 



16, 1867. 



FOR DEPOSIT LEDGER 



2 



2 ! John Ward 



2 Harriet Lenox 

3 Barclay, Hope & Co. 
5 ; A. B. Hunter 

5 I J. W Burnham 



Dep'd S. Hill on Union Bk. 
Bank Notes 

11 II II 

It n u 

w n It 

u n 
Ja«. Wood on 1st Nat Bk- 



1500 



800 
700 





1200 




1400 




1100 




1600 


700 




900 





G. C. B. 1 



6800 



I 



15, 1867. 



50533 34 



1 R. Lenox 



1 R. C. Root, Anthony & Co. 



Dep'd Bank Notes 

Hill on 9th Nat. Bk. 



2 
2 
2 
3 
3 
4 
4 
5 
5 
5 
5 



John Ward 
HarriPt Lenox 
Harper & Brothers 
Dufl" Bros. & Co. 
J. Carver 
W. B. Archer 
Lyon & Haven 
Roy, Wade & Co. 
J. W. Burnham 
R. P. Dufl* 
H. P. Ford 



// 


Banl 


c Notes 


// 


Mackey on Chemical Bk 


// 


Bank Notes 


// 


n 


II 


w 


n 


II 


It 


n 


II 


H 


II 


II 


w 


II 


II 


w 


n 


n 


w 


II 


II 


n 


II 


II 



Certificate of Deposit No. 1* 
II If II 2 

G. C. B. 2 



* See Form, p. 274. 



1000 
2000 



3600 
1400 



3000 
5000 



2500 
1800 
5700 
6500 

2100 
10000 
4350 
3700 
1950 
2100 
2400 

51100 



264 



265 



I 



ir 



tiH^ 



''i 



RECEIPTS FOR GENERAL LEDGER. 



May 



Discount & Interest 
Tiaring Bros. & Co. 

Iron City Nat. Bank 
Bills Discounted 



1st Nat. Bk., Chicago 



1st Nat. Bk., Boston 
Exchange 



Baring Bros. & Co., 



Profit & Loss 
Discount & Interest 
Exchange 



Rec'd for May Coupons /^ bonds 
If II Bill No. 2 @ 60 days s'gt in 
favor of C.Bell, £9000 St'g 
protest on A. J. Turner, No. 8, ret'd 

11 J. Barker & Co., No. 18 
S. Lewis & Co., 20 

J. W. Bliss 21 



// 



// 



Baker & Hill 
Porter & Dick 
W. G. Kay 

Draft on Chemical Bank 

10 % prem. on Bill No. 2 
sundry exchanges 



G. C. B. 2 



Rec'd of Stacy & Evans for No. 3 ret'd 
// for protest on do 

II 10 fo damages on do 

» Interest on do 

# 10^ premium on do 

sundiy exchanges 



G. C. B. 2 



18000 
40000 

2 

5700 





6900 


8600 




2100 




1200 




\ 


2394 


1 ■ 

I 


4112 


4000 




i 112 





77108 



June 



20000 
3 50 



20003 



2000 

204 

2116 



2000 
116 



60 



94 




44 



266 



14, 1867. 



FOR DEPOSIT LEDGER. 



3 



E. C. Root, Anthony & Co. 



Duff Brothers & Co. 



Harriet Lenox 
5 I G. R. Duncan 
1 R. Irvin & Co. 



2 



Harper & Bros. 
R. Lenox 



Dep'd Bank Notes 
Coin 

Dep'd Bank Notes 
Coin 

// // 

Certificate of Deposit No. 3 

Coll. R. Glass & Co., Pittsburgh 
Less Exchange 



Coll. W. Payson, Pittsburgh 
Less Exchange 

Coll. G. Wilde & Co., Montreal 
It J. Carter, // 

Less Exchange 

G. C. B. 2 





[ 


3000 




i 1400 






1600 


2000 




1100 






900 






ii 


1100 

1200 

784 




I 800 






16 

1' 


1176 




j 1200 






'■ 24 




2400 




3528 


1200 


3600 
72 






12, 1867. 



4 Lyon & Haven 

5 A. B. Hunter 

Duff Bros. & Co. 

2 Harriet Lenox 

R. C. Root, Anthony & Co. 

1 R. Lenox 

4 W.B.Archer 

Lyon & Haven 



Dep'd Coin 

Bank Notes 

II Brown on 4th Nat. Bk. 
Coin 

u Coin 

Jones on Winslow, Lanier & Co. 

ff Bank Notes 

u Coll. J. L. Dixon 

'/ Day & Martin 

H Coll. W. Burton 
Jas. Carver 

It Coll. C. H. Ball, Pittsburgh, 800 
It II J. Home, // 200 

Less Exchange 

M Coll. W. Baker, Chicago 
Less Exchange 

G. C. B. 2 



700 
600 



900 
300 



1200 
900 



1600 
1100 



2400 
1800 



2800 
5iS 

3000 
60 



12788 



I 



■i 



1300 
1200 
2100 



1800 
2700 



4200 
2744 

2940 
189S4 



267 



, I 



it 






REGISTER OP SIGNATURES. 




Jan. 
Mar 



Jan. 



Jan. 



Jan. 



10 '! Barclay, Hope & Co., by A. C. Barclay 
16 1 J. W. Burnham 



10 



t 

10! 



€. 



James Carver 



]>. 



10 



Duflf Brothers & Co., by Win. H. Duff 
Duflf Brothers & Co., u T. C. Duff . 
Duff Brothers & Co., // B. P. Duff . 



Harper & Brothers, by John Harper 
Harper & Brothers, // James Harper 



I. 

Jan. 10 Richard Irvin & Co., by E. Irvin 



Jan 



10 : Lyon & Haven, by Wm. M. Lyon 
Lyon & Haven, // J. W. Haven . 

Robert Lenox 

Harriet Lenox 



R. 



Jan. -10' R. C. Root, Anthony & Co., by R. C. Root . 



R. C. Root, Anthony & Co., / 
R. C. Root, Anthony & Co., 
Ryan & Dale, 
Feb. 15 Roy, Wade & Co., 



J. Anthony, Jr. 
A. S. Allison . 
W. L. Eyan . 
J. C. Roy . . 



w. 



Jan. 10 John Ward 



City 



City 



City 



City 



City 



City 

9 



City 

H 

K 




City 



J. J. Jones.* 



PAYING TELLER'S CASH BOOK, 



CITY NATIONAL BANK, 



JANUARY, 1867. 



1. This book is of the same form as the Receiving Teller's Cash Book, the left page 
recording all transactions for the accounts of the General Ledger, and the right page for the 
Depositors' Checks paid and certified, and for Certificates of Deposit. Although we have 
passed the contents of this book into the General Cash Book, the Accountant will soon 
perceive that the arrangement of the Ledger titles enables him to post them direct from 
here as easily as from a Journal. When this mode of posting is adopted, no General Cash 
Book is required, — the balance of that account being obtained from the Cash account in the 
General Ledger. 



261) 



* In this book the Bank ought to have registered, in alphabetical order, the signatures of all per- 
«)n9 keeping accounts with it; and these signatures should be witnessed by the Paying Teller, or some 
other officer of the Bank. 

268 






!; 



PAYMENTS FOR GENERAL LEDGER. 



New York, 



1st Nat. B'k, Chicago Fd Draft on 0. H. Bliss 
1st Not. B'k, New Orleans // " " F. J. Herron 
Forei<^n Bills of Exchange '/ for Brown, Brothers & Co., on 

G. Peabody for £10,000 St'g 
Exchange " 5% Premium for do. 

U. S. Bonds /' for 300 5/20 Bonds of $1000 

each 

G. C. B. 1 



500 

1000 

44444 

2222 



44 
22 



300000 
348166 66 



Iron City Nat. Bank 



1st Nat. B'k, Chicago 



1st Nat. B'k, New Orleans 



U. S. Bonds 



Exchange 



Fd Coll. Bates & Bell 
Less Exchange 

// Coll. W. S. Hunter 
Less Exchange 

// Coll. Gregg & Hall 2000 

„ I, J. Kane J600 

Less Exchange 
f> for 100 5/20 Bonds of $1000 

each 
n Sundry Exchanges 

G. C. B. 1 




February 



3564 



792 



3528 



3600 

72 



100000 
i 116 

! 108000 



March 



1st Nat. B'k, Chicago 



1st Nat. B'k, New Orleans 



Iron City Nat. B'k 



Fd Coll. Patterson & Wild 
Less Exchange 

u Coll. Hay & Wood 
Less Exchange 

// Coll. R. Bruce 
Less Exchange 



1200 
12 

2400 
48 

1800 

18 



1188 



2352 



1782 



Foreign Bills of Exchange if for Pollock & Gilmore on R. : 

Rankin & Co., for £5000 St'g • 



Exchange 



n 5% Premium on ditto 
// Sundry Exchanges 

G. C. B. 1 



22222 

1189 



1111 11 
78 



28733 33 



22 

11 



270 



January 10, 1867. 



Jj'OR DEPOSIT LEDGER 



2 Harper & Bros. 

3 Barclay, Hope & Co. 

4 W. B. Archer 
4 Lyon & Haven 

1 Rich'd Irvin & Co. 



Paid Check 



If 
» 

ff 



H 
H 

n 
w 



G. C. B. 1 



1800 
1500 
1000 
1200 
2400 



7900 



15th, 1867. 



2 


Harper & Bros. 


Paid Check 


1 


R. Irvin & Co. 


\i 


u 


1 


R. C. Root, Anthony & Co. 


II 


II 


1 


R. Lenox 


It 


» 


3 


Duff Bros. & Co. 


» 


ff 


2 


Harriet Lenox 


If 


» 


2 


John Ward 


H 


If 


4 


Lyon & Haven 


If 


It 


3 


Jas. Carver 


H 


a 


4 


Ryan & Dale 


ft 


I 


4 


W. B. Archer 


It 


H 


5 


Roy, Wade & Co 


If 

G. C. 


H 


\ 




B. 1 



1500, 1000 



600, 500 

1500, 1000 

300, 400, 600 

600, 200 
1400, 1600 



2000 
2100 

600 
2500 
1100 

600 
1100 
2500 
1300 

800 
3000 
1000 

18600 



I 



leth, 1867. 



5 

,5 

5 

4 
3 

!3 
3 



J. W. Burnham 


Paid Checks 


A. B. Hunter 


U tt 


Roy, Wade & Co. 


It n 


Ryan & Dale 


n » 


J. Carver 


U It 


Barclay, Hope & Co. 


It n 


Duff Bros. & Co. 


II .7 



500, 


700 


200, 


100 


400, 


600 


2000, 


500 


1600, 


400 



1200, 1000 



G. C. B. 1 

The left money column is used for short-extendinu checks where one depositor 
draws a number on one day. 



1200 
300 
1000 
2500 
2000 
1100 
2200 



10300 



271 



PAYMENTS FOR GENERAL LEDGER. 



Circulation P'd mutilated ret'd per B. N. R. 1 

Foreign Bills of Exchange // for Betts & Turner on Bold 

& Starkey for £4500 St'g 

Exchange 

// 6% Premium for ditto 

If 1% disc't on our Dr'ft No. 1 



// 



Expense 



i% 



II 



II II 



II 



11 



II Rent to April 1st 
II Salaries to April 1st 

G. C. B. 2 



1000 
1975 



Iron City Nat. B'k 



Bank of Montreal 



1st Nat. B'k, Boston 



Exchange 



Fd Coll. R. Glass & Co. 
// H W. Pay son 
Less Exchange 

II Coll. G. Wilde & Co. 
9 // J. Carter 
Less Exchange 

n Coll. J. Barker & Co. 

Less Exchange 
n Sundry Exchanges 

G. C. B. 2 




2400 
1200 3600 
36 



2400 
6 



Iron City Nat. Bank 



Fd Coll. C. H. Ball 
u II J. Home & Co. 
Less Exchange 



800 
2000 ii2800 
28 



1st Nat. B'k, Chicago 

V Coll. W. Baker 
Less Exchange 
Foreign Bills of Exchange // for Dyer & Morgan on Swain- 
son & Willis, £450 St'g 
Exchange 

n %ffo Premium on ditto 
'/ Sundry Exchanges 

G. C. B. 2 



3000 
30 



160 
58 



272 



April 



1200 


1 


80 




10 





500 
20000 

1290 



2975 



24765 



May 



1980 



3564 



2394 



62 

8000 



June 

2772 



2970 

2000 
218 

7960 



ISth, 1867. 



FOR DEPOSIT LEDGER. 



Paid Check 



// 



II 



R. Irvin & Co. 

R. Lenox 

R. C. Root, Anthony & Co. Certified Check 

Harriet Lenox Paid // 

Duff Brothers & Co. Certified* // 

A. B. Hunter // it 

John Ward Paid // 



Paid 

Certified 

G. C. B. 2 




14th, 1867. 



Harper & Bros. 
Harriet Lenox 
John Ward 
J. Carver 
Ryan & Dale 
R. Lenox 
Lyon & Haven 



400, 500 



Paid Checks 

n u 

" » 300, 400, 700 

" * 200, 300 

» » 600, 800 

// Protest on No. 8, ret'd 

ff // // // 19 



G. C. B. 2 



12th, 1867. 



Paid Check 



Harriet Lenox 

Jno. Ward # n 600, 500 

Duflf Bros. & Co. // II 200, 300 

R. C. Root, Anthony & Co. n u 400, 500 

W. B. Archer u n 300,' 900 

R. P. Duflf Certificate of Deposit No. 1 

G. R. Duncan u u u « 3 




G. C. B. 2 



• bt* Form, Pago 274. 




900 i 

700 

1400 

500 

1400 

2 

175 



4903 75 



1300 
1100 
500 
900 
1200 
2100 
1200 



I 



8300 



273 






f 



M 



TELLER'S STATEMENT, January 10th, 1867. 



" City National I>aak" Notes 

Legal Tender » 

National Bank » 

Gold 

Silver 

Checks and Drafts 

Memoranda 



Receipts 
Payments 



A.M. 




P.M. 






1 

10000 




150000 


150000 




160000 


44500 




87000 


10000 




2288 50 


1871 


84 






2100 




399238 ,50 


218471 


84 


175300 








356066 


66 


574538 50 


574538 


50 





A CERTIFICATE OF DEPOSIT. 




itij Sati0nal %mh of Seto flmrb, 

^ ^ ^ -e ^ 




u//^: /cf^'/. 




m 



has deposited in this Banh 



^ WZfi '^Ao €e4 am^ ^ne ^^l^Ufk^ '^I>oll^^ payable to his 
order on j^eturn of this certificate properly endorsed. 





\$^fi)0.^ 



^^^//, CASHIER. 




ll 



-^ 



THE 



OrrERIJ^G BOOK, 

« 

CITY NATIONAL BANK, 



JANUARY, 1867. 

1. This is a memorandum of the business paper offered to the Board of Director^ for 
discount. The owner endorses his signature on each piece of paper. If rejected it i^ 
returned to him. If accepted, it is numbered, and entered in the Book -Notes and' Bilk 
Discounted." 



275 



I. rhis certificate is negotiable either by blank or special endorsement. (See Entry, p. 265.) 



w 



li\ 



m"^^ 



t 



i 

mm 



lUSL. 




A CERTIFIED CHECK. 



A> 9....r^^€ii4c/ife<t- 



^ W^^^!/iin4i^ 



...ci t^eaiet, 



STAMP. 

#1 i^-. 



E. 



^f^0 ^ioM^ ^ ^. 



274 



H: 



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nS 


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Ol QJ 


<D 


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■M 


&. P. 


SIh 


<o <v 


<u 


o o 


o 


a 


u O 


o 


^<3 


-«1 



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§ 



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^ 



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<u 



V 



O O 



o 
■57 



<P^ P5 



o o 
o o 



o o 
o o 



»0 ^ Oi -^ t^ OO 



(M 



(M 






a o 



r£3 c^ 



en 






Ww 



tc 



w 






pq 



o 



^ ^ J1 



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a 



CO CD -^ C0O5 '^ 



N tH (M CO CO b' 
T-l 1—1 rH tH C>< 



(O 



fl'9 






o 



»5 '-' 

50 



CO 



00 i^ « So O 00 w ^ 25 



o 

CD 



'•-3f*H 



fi^shj-^ft 



•73 'd T3 "^ rri 

« O O) O ^ 

'4>> -W <l^ -1^ V 

Ph &. Cu, &,-g 

0)0)0 

o o o o . , 

O O O U 0) 



QJ 



o o o o o 
o o o o o 

•^ CO O 00 CO 

C<1 tH T-( tH T-H 



C t- 



v 



O) 



(S 



^ o * o 
O o 



1-3 1-^ 






W 






^. .s 



CQ ;^ 



W O 

»-i O t; »- 

o 



O .t^ ft fc C8 



03 



=« 



O) 



s 

c3 






33 

CQ 



PQ a 



o 



« 



hi ha QQ hj *^ 



OS 



OQ 



03 



J 



be * b 



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a 



a 



CO CO -^ CO Tj< 



O T-t 1— I !M tH 



^ 



Ph 



^ a 






2-77 



8 



g 

.o 



S 



s 



« 



KKi- 



NOTES AND BILLS DISCOUNTED 



No 



Drawer. 



Harper & Bros. 
Note 






W. B. Archer 
Note 



'/ 



Endorser. 



W. S. Haven 
J. W. Biirnham 
W. S. Murray 
Joel Post 
R. C. Root 
Hardy, Jone.-^ & Co. 
R. Banks 



Payer. 



Gregg & Hall 
Mount, Joy & Co. 
G. W. Leeds 
Hay & Wood 
Patterson & Wild 
Bateman & Hill 
J. W. Loring 



Payable in 



New Orleans 

aty 

It 

il 
Chicagu 
City 



Note.— 1. All paper discounted by the Board is ontered in this book. It is the property of the Bank, and differs irom paper 
received for collection. Protested paper is registered in the " Protest" Book. 

NOTES AND BILLS DISCOUNTED 



8 



Note 
91 » 
id n 



11 
12 
13 



n 
» 



W. B. Archer 
Wm. Irons 
John Doe 
Dufl" Bros. & Co. 
Lyon & Haven 
J. W. Ryan 



Wm. Page 

Hay & Wood 

R, Bruce 

M. Hunter & Co. 

J. Morton 

J. Carver 



City 

New Orleans 

Pittsburgh 

City 



u 
It 



NOTES AND BILLS DISCOUNTED 



14 
15 

16 

17 



Note 






Smith & Beck 
Paul Cooper 

Wm. Porter 

J. Ward 



Day & Martin 
Hart & Bowman 

Duncan, Dunlap & Co. 

G«o. Wildes 



City 

H 
U 



NOTES AND BILLS DISCOUNTED 



181 
19 
' 20i 
21 



Note 
II 
n 
n 



J. Carver 
R. Morris 
J. Barker 
Porter & Hill 



J. Barker & Co. 
J. Kane 
S. Lewis & Co. 
J. W. Bliss 



* Boston (sent IstNat. B'k, 
City 






• Where we have only an occasional collection, it is unnecessary to open an account on the • Bills Remitted for C!ollectiou" 
Book. The above memorandum is sufficient. See P. T. C. B., "272, and R. T. C. B., 266. 

278 



Thursday, January 10, 1867. 



Discounter. Date. 


; Time. Due. 




Anuiunt. 


Int. 


Exch. 


Int. k Net 
Exch. Pnx;eeds. 


:^ 


^lien 
PakL 


1S66 




1867. 














lfe«. 


Harper ^< T>ro;>, 1 )ec. 


1 


2 mos. Feb. 4 


25,12% 


2000 


8i33 


40 


48.33 195167 


2 


Feb 15 


RvMM tfc Dale Nov. 


12 


?. II ,15 


36 


1000 


6 




6 994 


4 


15 


Barclay, Hope Dec. 


14, 


60 ds. 15 


36! 1 


1800 


10 80 




10 80 1789 20 


3 


15 


J. Carver | 


14! 


1 60 '/ 15 


36 


1600 


9 60 




9 60 1590 40 


3 


U 


W. B. Archer Nov. 


10 


4 mos Mar. 13 


62 1%' 


1200 


12 40 


12 


24 40 1175 60 


4 


Mar. 16 


Lvon c'v- Haven Dec. 


14 


60 d:-'. Feb. 15 


36 


1500 


9 




9 1491 


4 


Feb. 15 


R. Irvin & Co. 


14 

i 


3 mos. Mar. 17 


66 

1 


3000 


33 
8913 


52 


33 2967 
141 13 11958 87 


1 


Mar. 16* 
Deprs 


















8913 




Int. 








1! 




t 








52 




Fxch. 












i 


12100 






12100 




Jour. 1 * 



* Mar. 17 was Sundtiy. 

f The Journal explains how to post these matters direct to General Ledger. 



Friday, February 15, 1867. 



1866. 

W. B. Archer Nov. 13 
R. Irvin & Co. Oct. 8 
Roy, Wade & Co Sept. 9 
DuffBros.&Co. 1867. 13 
R. Lenox Feb. 11 

Root, Anthony 

& Co. Jan. 12 



|16 


29 




3600 




11 


24 


■2% 


2400 


12 


25 


1% 


1800 


16 


29 




3300 


.16 

1 


29 




1200 




16 


29 


, 


2100 


1 




i 


1 


14400 




1 


i 


, - — - 





17 40 




17 


40 3582 60 


4 


Mar. 16 


9 60 


48 


57 


60 2342 40 


1 


1« 


7 50 


18 


25 


50 1774 50 


5 


1§ 


15 95 




15 


95 3284 05 


3 


1« 


5 80 




5 


80 1194 20 


1 


16 


1015 




10 15 2089 85 


1 


16 


60 40 


66 


132 40 14267 60 




Deprs. 








66 40 




Int. 








66 




Exch. 



Saturday, March 16, 1867. 



i 


1867. 


i 


■ 1867. 








A. B. Hunter 


Jan. 


12 


3 mos. Apr. 


15 


30 


! 1500 


J. W. Burnham 


Feb. 

1S66. 


11 


60 ds. 


15 


30 


2400 


DuftBros.&Co^ 


-Dec. 


12 


4 mos. 15 


30 


90(^ 




1867. 












John Ward 


Mar. 


13 

1 

1 


30 ds. 

1 

i 1 

' i 
1 ' 

1 


15 


30 


j 2400 
7200 



7 50; 

12 Ij 

4 50 

12 
36 



J. Carver |!Apr. 

Lyon & Haven \ Feb. 
W. 1>. Arcber i Jan. 



Rvan & Dale 



Mar. 12 




Monday, April 15, 1867. 



1867. 






May 


13 


28 




14 


29 




14 


29 




14 


29 



V/c 


2400 




II 


1 1600 




1500 




1800 





7300 



14400 



Jour. 2 



7 50 1492 50 5 Apr. 15 
12 2388 5 15 



4 50 

12 
36 



895 5a 3 

2388 2 

7164 
36 

7200 



15 

Deprs. 
Int. 

Joor. 2 



1120 


12 


23 20 


2376 80 


3 


May 14 


7 73 




1 7 73 


1592 27 


4 


Prot'd 


725 




7 25 


1492 75 


4 


May n 


8 70 




' 8 70 


1791 30 


4 


14 


3488 


12 


46 88 


7253 12 
34 8S 
12 




Depn. 

Int. 

Exch. 



7300 



Jour. 2 



^7^^ 



NOTES AND BILLS DISCOUNTED 



No> 



Drawer. 



22 A. J. Pierce 

23 Harper & Bros. 

24 Note 

26 A. Stewart & Cb. 



Endorser. 



J. W. Burnham 
J. Betts & Co. 
Lyon & Haven 
J. W. Myers 



Payer. 



Payable in 



Hay & Wood 
J. R. Weldin & Co. 
Davy, Jones & Co. 
J. Home 



New Orleans 
Pittsburgh 
City 
Pittsburgh 



Tuesday, May 14, 1867. 



Discounter. Date. Time. Due. 2 S ,.£ 5^ Amount. 

P^ t^« 

1867. 1867. 

John Ward May 14 90 ds. Aug. 15 93* 2% 1200 

Barclay, Hope - 14 60 // July 16 63 1% 800 

Lyon & Haven 1 3 mos. Aug. 4 82 2400 



t 



Int. 



Exch. 



Roy,Wade&Co 



14,:90ds. 



15 93 1% 1800 



6200 



IS 60 24 
840 8 

32 80 
27 90 18 



lut. & 
Exch. 



Net 
Proceeds. 



Wheu 
Paid. 



12 60 1157 40 2 

16 40 783 60 3 

32 80 2367 20 4 

45 90 1754 10 5 



87170 50 137 70 6062 30 

87 70 

I If i 'I 6200 



Depis. 

Int. 

Excb. 

Jour. » 



* In some States the law authorizos the banks to charge interest for th.- di.y o! discount and dav of payment In New 
York the rule is as stated p. 45. . i j mu .^^m 



I 



i 



NOTES AND BILLS DISCOUNTED 



26 

27 
28 
29 
30 



Harper & Bros. 
Note 

// 

J. West & Co. 
Note 



Harper & Bros. 
J. Page 
A. T. Howden 
Barclay, Hope & Co. 
R. Irvin & Co. 



W. G. Johnston & Co. 
A. B. Weed 
J. Gardner 
F. L. Rainbow 
R. Banks 



Pittsburgh 
City 

// 
Pittsburgh 
City 



1. This is a register of all Foreign Bills of Exchange usually bought by the President under (By- 
Board. But this paper, being usually bought at a premium, cannot be registered on " Bills Discounted" 

Foreign Bills 



When 
received. 



1867. 
Jan. 
Mar. 
Apr. 
June 



No. 



Drawers. 



10 


1 


16 


2 


15 


3 


12 


4 



DraweoH. 



Endorsers. 



Brown Brothers & Co. 
Pollock & Gilmore 
Betts & Turner 
Dyer & Morgan 



George Peabody 
R. Rankin & Co. 
Bold & Starkey 
Swainson & Willi? 



Wm. Page 
Marks & Cowden 
Stacy & Evans 
W. Martin 



280 



Wednesday, June 12, 1867. 



1867. 1887. i : I 

Harper & Bros. June 12 60 ds. Aug. 14 63'!%' 600 ' 

3 113; 1600 

4 ; 84! i! 1800 
8!ll8l!l% 1200 

13 123 , 40001 



J. W. Burnham May 30 4 mos. 
A. B. Hunter June 1 3 // 
Barclay, Hope 5 

R. Irvin & Co. 10 



3 

4 

,4 



aos.jpct. 
" jSept. 
'/ Oct. 



// 
// 



6 30 6 
3013 
25 20 
23 60 12 
12 _ 

167 23 18 



12'30 


' 587 


70 


2 




30 13 


1569 


87 


5 




25 20 


1774 


80 


5 




3;5 60 


1164 


40 


3 




82 _ 


3918 




1 




185 23 


9014 






Dej.™. 




167 23 




Int. 




18 






fixch. 



9200 



9200 



Jour, -t 



BILL BOOK. 

Laws, Article X.) direction of the Board; or, if desired, each transaction may be suUiiItied to the 
book without changing its form. 

of Exchange. 



Where drawn. 



Dated. 



Sight. 



New York 
Montreal 
Toronto 
New York 



1867. 


I 


Jan. 


10 


Mar. 


5 


Apr. 


10 


June 


12 



Payable in. 



Amount. 



Wnen 
Uemitted. 



Memoranda. 



i60 


days 1 


■60 


// 


30 


" 


60 

* 

! 

I 


II 



London 
Liverpool 

' II 
London 



£ 

10000 

6000 

4500 

450 



s. d. 



1867. 

Jan. 
Mar. 
Apr. 
June 



12 Jour. 1 * 
16 i; 2 

15 2 

12 ; 3 



* See ulao P. T. C. B. 1. 
281 



•e t 

o i 

OS t 

o 

a 



§ 

a 



;«>? 



pes 
Pi 
Pk 



OQ 

Pi 



>» 

ei 
Hi 



I- 

£ 
o 



9 
g 



CO 



0) 



(M 



o 

s 



03 



O 

o 
o 



'o 





(3Q 




s 




e8 




> 


OQ 


S 


• F-« 






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c 




:^ 


^ 




cd 


p5 











a 




u 




9 




H 




=« 


o 


OQ 


-•^ 


■1-1 


o 


« 


;z; 


n 



»o 






OS 



o 



Oi 



tH (M 



• 1-4 O (^ 

^ >. ^ s 

^ cc ^ "^ 






OS 



^ <^ 



irlv 






c^ o ^ b 



o S ':5 



^ 03 OJ 



.1— I 



OQ 



o ::: ^ r^ 



55C fe 

O 



." *• G3 fl 
^ .1^ "^ ^ 

"72 ^ « o 



OJ 

o 



o S 2 






&c 






C . 03 ^ 



a) 



Ph 03 . cc 






OJ S "1^ j3 

fi ^ .s § 

"" "^ -g ^ 

t^ ^ 5 0> 

«, <=' ® 

rt 5^ a 

a s 

CO 03 



=2 



-<.9 

pi 
O 

o 



s-^ 






03 

§ ^ £ I 

fl == S 5::! 

03 03 ciS Pi 
Cl,^ 03 

O rt »-' 



P. o 



i> >-j DO rC 

r—i P rH 0> 

c rS p- 

3 s^ c P. 
^ ^ ^ 

S ^ o 



z> o ^ 

^ ^ <v 

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.2 c . 



O 



5C 

-4-- 
C 

P, 



BANK-NOTE REGISTER, 

CITY NATIONAL BANK, 



JANUARY, 1867. 

1. This book registers all Bank-notes received from the Comptroller of the Currency. 
As they are signed, they pass into the Receiving Teller's Cash Book as money. Whoii 
mutilated, and returned to the Comptroller, they pass into the Paying Teller's Cash Book 
to credit of Cash and debit of " Circulation." 



283 



282 



U 



li 



BANK-NOTE 



REGISTER. 



II 

I»BU£I>. 

1 ! 


IMPIUS-I 
SIOSS. I 


Let* 

TEB. 

A 
B 
C 
D 


Date. ! 

Ii 


Teeascrt Number. 


Bask Numbkk. 


Dbnomi 

NATIOK. 


Amount. 

20000 
20000 
20000 
20000 


Mem. 


1887. 
Jan. 


101 

i 

10 

15 

15 

16 

16 

16 

16 

16 

1 

t 


4000 
4000 
4000 
40001 


1867. 

Jan. 

Jan, 

Jan. 

Jan. 

Jan. 

Jan. 

Jan. 

1 

I 
Jan 

Jan 


5 

r 

5 

5 

1 
5 

m 

O 

5 
5 
5 
5 


324001 to 328000 
324001 // 328000 
324001 // 328000 
324001 II 328000 

328001 to 330000 
328001 // 330000 
328001 // 330000 
328001 // 330000 

415001 to 425000 : 
415001 // 425000 
415001 II 425000 
415001 // 425000 

425001 to 425800 
425001 II 425800 
425001 '/ 425800 
425001 '/ 425800 

; 430001 to 430500 

! 430001 // 430500 

430001 // 430500 

430001 // 430500 

430501 to 480600 
430501 II 430600 
430501 II 430000 
430501 V 430600 

430601 to 430625 
430601 II 430625 
430601 " 430625 
430601 " 430625 

! 430626 to 430630 

i 430626 // 430030 

430626 // 430630 

430626 // 430630 

' 430631 to 430632 
430631 // 430632 
430631 // 430632 
430631 /' 430632 


1 to 4000 
1 // 4000 
1 II 4000 
1 // 4000 

4001 to 6000 
4001 // 6000 I 
4001 // 6000 1 
4001 // 6000 

6001 to 16000 
6001 '/ 16000 
6001 '/ 16000 
6001 '/ 16000 

16001 to 1680Q 
16001 '/ 16800 
16001 /' 16800 
16001 " 16800 

16801 to 17300 
16801 // 17300 
16801 '/ 17300 
16801 II 17300 

17301 to 17400 
17301 // 17400 
17301 /' 17400 
1730. " 17400 

17401 to 17425 

17401 II 17425 

17401 '/ 17425 

1 17401 // 17425 

17426 to 17430 
; 17426 II 17430 

17426 // 17430 
{ 17426 II 17430 

17431 to 17432 
17431 // 17432 
17431 II 17432 
17431 // 17432 

t 


58 

5s 

5sl 

58 

lOs 

10s'. 

10s 

lOs 

5s 
5s 

58 
58 

lOsi 
lOsj 
10s' 
lOs 

208 
208 
208 
208 

508 
508 
508 

50s 

lOOs 
100s 
100s 
100s 

5008 
5008 
5008 
500s 

i 

1000s 
lOOOs 
1000s 
1000a 








A 
B 


80000 


R.T.(3.B.l 




2000 
2000 
2000, 

2000 ; 


20000 
20000 
20000 
20000 

80000 


R.T.C.B. 1 


Feb. 


10000 
10000 
10000 
10000 


A 1 
B 
C 
D 

A 
B 
C 
T) 


50000 
50000 
50000 
50000 

200000 


R.T.C.B.1 




800 
800 
800 
800 


8000 

8000 

8000 

, 8000 


% 




A 
B 
C 
D 

A 
B 
C 
D 

A 
B 
C 
D 

A 
B 
C 
D 

A 
B 
C 
D 


32000 


R.T.C.B.1 


Mar. 


500 
500 
500 
500 

t 


10000 
10000 
10000 
10000 






40000 

• 


R.T.C.B.2 




100 
100 
100 
100 


5000 
5000 
5000 
5000 






20000 


R.T.C.B.2 




25 
25 
25 
25 


2500 

2500 

! 2500 

2500 

10000 


R.T.C.B.2 




5 
5 
5 
5 


2500 
2500 
2500 
2500 

10000 

2000 
2000 
2000 
2000 

8000 


i 

1 

R.T.e.B.2 




2 
2 
2 
2 


R.T.C.B. 2 

1 






i 



When ani> 



1867. 

Apr, 



How Rktiked. 



15 



NoTKS. i TEEA8URT Number. iBank Niimber. ti^Tm"' '^*'""^^^^- Mm 



Sent to Wa.shington 10 324001 to 324010 

10 ! 324051 II 324060 



1 to 10 1 OS 
51 '/ 60 i 5s 



50 MutiJate«l 
50 



20 328001 II 328020 4001 /' 4020 | 10? 20<» 



20 



328041 // 328060 4041 n 4060 

1 



10s 200 



500 P.T.(\B.2 



284 



285 



i 







FORM OP PROTEST FOR NON-PAYMENT. 

Jnited States of Aimerica. 

"SBe if ^nown^ That on the day of 

the date hereof M. W. ^. ^ool, mm 
guljUF, ly authority of the tf^omwottwealttl Of 
getttt.^ylvattia, duly commissioned and sworn, 
residing in the City of Pittsburgh, County of 



^vrRTUET LIBERTY U INDEPENDENCE.^ 

Allegheny, in the said Commonwealth, at the request of 

f 1® tw%m ilty lattom'Sl l^ifc^ 

exhibited, the original .rJ^o^ whereof a true copy is on the other side 
written (the time therein specified for its payment having fully expired), 

t€^€€d€t/ 

whereof I duly notified the <=^6a/z€l u^/ W^iM^^^ 

QShcreicpon /, the said J^otary, at the request aforesaid, Have 
f t0tej$tcd, nnd Do hereby solemnly ^Xt^U^i, against the ,=M€i^t «W 
^^u/ac^^l of the said .=Jfo^, and all others concerned, for all exchange, 
re-exchange, costs, damages and interests, suffered and to be suffered 
for want of ,£^€iy^»»t€^ thereof, 

V^xxs gone anb |rotesicb, at Pittsburgh, the </9tA day of ,==M€iyy 186^- 



In Testimony Wh^reaf , I have hereunto set my 
hand and aJI/ixed my JVotarial seal, t?ie day 
and year above written, 

W^. ^. ^ooA^ Notary Public 

286 




CITY COLLECTION REGISTER, 

CITY NATIONAL BANK, 



JANUARY, 1867. 

1. Notes and Bills received for collection and payable in the City are reu!^tere 1 ni this 
book. In a limited business the payments may pass direct into the Receiviui: 'i\-l:er*i 
I'ash Book. But, as the amounts never mature in the same order that they isre entered, 
?lie dates of payment can be more conveniently brought into regular order on the '■ Pa.^sed 
Collection Register." 



THE FOREIGN COLLECTION REGISTER 



2. Records all paper falling due out of the City and which has to be forwarded to our 
itgent in time for presentation on day of maturity. As forwarded, each is passed into the 
Book "Notes and Bills Remitted for Collection." 



287 



When 
received. 



1M7. 

Jan. 



10 



Mar. 3 



Apr. ' 25 



May 14 



CITY NOTES AND BILLS 



Payer. 



Endoraer. 



Baker & Fox 

Joel Post 

R. S. Davis 

J. B. Marks 

Ryan <fe Dale 

R. C. Root, Anthony k Co. 

Baker & Hill 

Porter & Dick 

W. G. Ray 

J. L. Dixon 

Day & Martin 

W. Burton 

Jas. Carver 

Wm. Beach 

H. J. Holmes 

Allen Park 

A. B. Ryan 

J. W. Parker 



R. C. Root 

J. W. Burnham 

R. Barnes & Co. 

Paul Jones 

Jno. Taylor & Co. 

Wm. Black 

J. W. Burnham 

Bailey & Coy 

W Morris 

Paul Jones 

G. A. Bayard 

Joel Post 

R. Lenox 

Harper & Brothers 

Barclay, Hope & Co. 



Owner. 



Barclay, Hope & (Jo. 

R. Irvin & Co. 

Jas. Carver 

Lyon & Haven 

1st Nat. Bk. New Orleans 

1st Nat. Bk. Chicago 



It 



If 



II 



J. Hardy 
J. Carter 



R. C. Root, Anthony & Uo. 

II u 

R. Lenox 

// 
Harper & Bros. 
Barclay, Hope & Co. 

II 9 

J. Carver 



FOREIGN NOTES AND BILLS 



When 
received. 



1867. 
.Lin. la 



Apr. j 15 



Mav 14 



Na. 



il 



4 
5 
6 
7 
8 
9 

10 
11 
12 
13 
14 
15 
16 
17 



Drawer. 



1 1 Bates & Bell 

2 j Harper & Bros. 

3 I R. Irvin & Co. 



Wm. Pagan 

R. Manly 

R. Glass & Co. 

W. Payson 

A. J. Turner 

C. H. Ball 

J. Home & C/O. 

Wm. Baker 
! J. Morton 
1 Roy, Wade & Co. 
1 A. D. Walker 
' Chas. Page 

J. Butler 

Myers & Hunter 



On wbom< 



Note 

W. S. Hunter 

J. Kane 

G. Wilde & Co. 
Jas. Carter 
Note 

// 

u 

n 

n 

II 
J. C. Baker & Co. 
W. S. Haven 
Note 

// 

M 

1 



In favor of. 



A. Stewart & Co. 
Harper & Bros. 
R. Irvin & Co. 

R. Lenox 

II 
J. W. Burnham 
R. Dick & Co. 
!R. Lenox 
IWm. Hood 
Wm. Lyon 
Wm. White 
A. B. Hunter 
Ourselves 
R. Weston 
Lyon & Haven 
W. Wattfi 
J. Post 



Payable in. 



Pittsburgn 

Chicago 

\ New Orleans 

. Montreal 

// 
Pittsburgh 

// 

«f 

H 

II 

Chicago 

New Orleans 

Pittsburgh 

Chicago 

Pittsburgh 

Chicago 

New Orleans 



288 



RECEIVED FOR COLLECTION. 



No. 



Date. 




Due. 



Amount. 



Memoranda. 





. 1866. 


1 


i 


1867. 






1 


Aug. 


12 


6 months 


Feb. 


15 


1600 


2 


Oct. 


12 


4 // 




15 


2400 


3 


Nov. 


12 


3 // 




15 


1200 


4 


Dec. 


14 


60 days 


• 


15 


2100 


5 


Feb. 


20 


10 ds. s'gt. 


Mar. 


16 


1200 


6 




26 


10 // 




16 


1600 


7 




11 


3 months 


May 


14 


3600 


8 


Jan. 


11 


4 If 




14 


2100 


9 


Mar. 


12 


60 days 




14 


1200 


10 




9 


1 8 months 


June 


12 


1600 


11 


Feb. 


9 


4 n 




12 1 


i 1100 


12 


Jan. 


9 


5 // 




12 


2400 


13 


Feb. 


9 


4 // 




12! 


1800 


14 


Apr. 


9 


3 // 


July 


12 


900 


15 


Mar. 


9 


4 // 




12 


1200 


16 




9 


4 // 




12 1 


1800 


17 


Apr. 


9 


3 // 




12! 


1800 


18 


Feb. 


9 


5 II 




12 


1500 



Passed Feb. 15th 



M 


15th 


11 


15th 


II 


15th 


II 


Mar. 16th 


II 


16th 


II 


May 14th 


If 


14th 


n 


14th 


If 


June 12th 


It 


12th 


II 


12th 


If 


12th 



RECEIVED FOR COLLECTION. 



Owner. 




Ryan & Dale 
Harper & Bros. 
R. Irvin & Co. 

R. Lenox 
R. Lenox 
R. Irvin & Co. 
Harper & Bros. 
R. Lenox 
W. B. Archer 
W. B. Archer 
Lyon & Haven 
A. B. Hunter 
Roy, Wade & Co. 
Roy, Wade & Co. 
Lyon & Haven 
A. B. Hunter 
Duff Bros. & Co. 



1866. 

Dec. 
Nov. 
Oct. 

1867. 

Feb. 
Jan. 

Mar. 
Feb. 
Jan. 
May 
Apr. 



12 
9 

8 

8 
8 
10 
9 
9 
7 
7 
7 



Time. 



60 days 

3 months 

4 // 

3 // 

4 // 
60 days 

3 months 

4 II 
30 days 
60 // 
60 II 



Due. 



May 


14 


60 ds. sgt. 


14 


60 // 


Mar. 1 15 


4 months 


15 


4 // 


15 


4 // 


Apr. 


15 


3 // 



1867. 






Feb. 


13 


3600 




12 


i 800 




11 


1600 


May 


11 


2400 




11 


1200 




12 


800 




12 


1200 




12 


1800 


June 


9 


800 




9 


2000 




9 


3000 


Aug. 


27 


2400 




22 


1000 


July 


18 


1500 


i 


18 


800 




18 


1600 




18 

1 


1100 



Amount. Exchange. 



36 

8 

32 

24 

12 

8 

12 

8 

20 
30 



Net 
PTOceed& 



3564 

792 

1568 

2376 
1188 

792 

1188 

Ret'd 

792 
1980 
2970 



Uemonuida. 



Passed Feb, 


15 


n 


15 


If 


15 


H Mav 14 


If 


14 


II 


14 


» 


14 


Protested 




Passed June 12 


n 


12 


n 


12 



289 



II (ti 






i|^' 



1 



NOTES AND BILLS EEMITTED FOR COLLECTION. 
Iron City National Bank, Pittsburgh. 



When sent. 



1867. 

Feb. 
Mar. 
May 



1867. 

Feb. 
Mar. 
May 



1 
1 
1 



1867. 

Jan. 
Feb. 
Mar. 
May 



No. 
1 

10 
6 



1 2 
1 5 

14 11 



Payer. 





1 

7 ! 




8 1 


u 


9 ! 


f 


10 1 




13 


1 


• 



Bates & Bell 
E,. Bruce 
R. Glass & Co. 
W. Payson 
A. J. Turner 
C. H. Ball 
J. Home & Co. 
W. S. Haven 



Amount. 

1 


When due. 




'! 1867. ' ! 


3600 


Feb. 13 ii 


1800 


1 


Mar. ,12 


800 




May 


12 


1200 






12 


1800 






12 


800 




June 9 i 


2000 






9 


1000 


1 


60 ds. 


sgt. 



Memoranda. 



Passed Feb. 15 
R. T. C. B. Mar. 16 
Passed May 14 

If 14 

Protested 
Passed June 12 

// 12 



First National Bank of New Orleans. 



20 


1 


1 


3 


1 


9 


14 

1 
( 


12 

i 

1 



Gregg & Hall 
J. Kane 
Hay & Wood 
J. C. Baker & Co. 



1 
1 




! 1867. 


1 


2000 


1 


iFeb. 


4 


1600 






111 


2400 


1 


Mar. 


11 


2400 




60 ds. 

1 


sgt 

1 



R. T. C. B. Feb. 15 
Passed Feb. 15 
R. T. C. B. Mar. 16 



First National Bank of Chicago. 



W. S. Hunter 
Patterson & Wild 
Wm. Baker 



800 
1200 
3000 



18OT. 

Feb. 12 

Mar. il3 

i June 9 



Passed Feb. 15 
R. T. C. B. Mar. 16 
Passed June 12 



Bank of Montreal, Canada. 



IMT. I !i I 

Apr. 25 4 Geo. Wilde & Co. 
5 Jas. Carter 



2400 
1200 



186^. 

May 



11 
11 



Passed May 14 
M 14 



1. In onr Private Bankers' Accounts, pp. 360 and 361, we give another form of this book. The above is the most convfr 
nient for a large foreign collection business. 

2. All paper remitted to our agents for collection is entered upon this book. 

3. After allowing sufficient time for the return of the paper, we enter our own in the " Receiving Teller's Cash Book." and 
Collections in the " Passed Collection Register," debiting at the same time our agent for the amount. 

290 



PASSED CITY AND FOREIGN 

COLLECTION REGISTER 



CITY NATIONAL BANK, 



JANUARY, 1867. 



1. Banks generally keep a Passed City and a Passed Foreign Collection Register. To 
save space, we have entered both on this book, the use of which is explained in -'City Col- 
lection Register," p. 287. When the business requires two Passed Collection- Registers, 
this form will serve for both. Reference to the Receiving Teller's Cash Book explains the 
mode of posting them. 

2. Sight Drafts sent us for collection are entered in this book without passing through 
" City Collection Register." 



tf 



291 



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TICKLEE, 

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JANUARY, 1867. 



1. This book records the day of payment of all the business paper in the Bank. It is 
made up from the Discount Book and Collection Kegisters. One, and sometimes two pages 
have to be reserved for every day's business in the year. And in extensive business it is 
often convenient to have one book for discounted paper, and another for collections, and 
sometimes one for Foreign collections. To save room, we have entered all in one book, the 
form of which will serve for the others when the nature and extent of the business require 
them. Although a very important book, it is, strictly speaking, only a memorandum-book, 
from which payers are notified of the day upon which their paper falls due. The Directors 
also regulate their discounts by learning from it the amount of discounted paper falling due 
every day. 

2. As paid, our own paper is marked " Entered/' or " Paid." Collections are marked 
*' Passed." 



! 



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. Burton 
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» , rH r-t 


O rH (M CO 

7-\ T-\ T-\ T-i 


•^ lO CO t» 00 

r^ r-\ i-( T-^ ■r-i 


CO 


-rj* O CO b- 

l-K T^ T->^ T-K 


i 



DEPOSITORS' LEDGER. 

CITY NATIONAL BANK. 

JANUARY, 1867. 

1. This book contains no accounts but those of Depositors and Certificates of Deposit. 
We have adopted a new form which we think Banks will find very convenient in business, 
as it constantly shows the balance of each account. The accounts are never closed until 
the depositor desires his Pass Book balanced. His account is then footed, and the balance 
brought down into the new account. See Duff Brothers & Co.'s account, p. 300. 

2. The aggregate balances of this Ledger must agree with the balance of the •• Deposi- 
tors' " account in the General Ledger. 



297 



296 



RICHARD IRVIN & CO. 



JOHN WARD. 



% 



. , \ 



II 



lii^ 



1 1 



18fl7. 

Jan. 



Feb. 



Apr. 
May 
June 



10 



15 



15 
14 
12 



Cash 

Discount No. 7 
Check 
Cash 
Collection 

w 
Discount No. 9 
'! Check 

// 
Collection 
Discount No. 30 



! 

Checks. 

1 


2400 


! 

i 

j 


2100 




2000 




1 





ROBERT LENOX. 





|l 


1867. 




Jan. 


10 Cash 


Feb. 


15, // 






Discount No. 12 






Checks 


Apr. 


15 


Cash 
Check 


May 


14 


Collections 



June 



Protest on No. 8. 
Collections 



2500 

••.100 

2 



Deposits. 



1500 
2967 

1800 
1552 
2400 
2342 



784 
3918 



40 



Balakcb. 




1200 
1400 
1194 20 

3000; 

I 
3528' 

4200 ! 



1294 20 



3194 



20 



6720! 20 
10920 20 



R C. ROOT, ANTHONY & CO. 



1867. 




Jan. 10 


Cash 




Feb. 


15 


Discount No. 13 






1 


Check 


600 


Apr. 15 


' Cash 






Certified Check 


1000 


May 14 


Cash 




JunCj 12 


Collection^ 








Checks 

1 


900 



1600 
900 
2089 1 85 

50001 

i 

3000 1 
2700 



3989 85 

7989! 85 
10989 . 85 

! 

12789 85 



If 









Checks 


i. Deposits. BALWot. 


1867. 








Jan. 


10 


Cash 




1800 




Feb. 


15 


Checks 


1100 




700 


Mar. 


16 


Discount No. 17 




2388 








Cash 




1500 


4588 


Apr 


15 


// 




2500 








Check 


2000 




5088 


May 


14 


Discount No. 22 




1157 


40 




Checks 1 


1400 




4845 40 


June 


12 


// 


1100 




3745 40 

! 
1 



HARRIET LENOX. 



1867. 

Jan. 


10 


Cash 


Feb. 


15 


Check 


Mar. 


16 


Cash 


Apr. 


15 


Check 


May 


14 


Cash 
Check 


June 


12 


Cash 
Check 




HARPER & BROTHERS. 



299 



400 
1600 

2800 

3200 

3700 



1867. 


* 








i 


Jan. 


10 


Cash 

Discount No. 1 
Check 


1800 


2000 
1951 


67 


i 
2151 67 


Feb. 


15 


Cash 

Collection 

Check 


2000 


2500 

784 




! 
3435 67 


Apr. 


15 


Cash 




5700 




9135 67 


May 


14 


Collection * 
Checks 


900 


1176 




9411 67 


June 


12 


Discount No. 26 




587 70 


9999 37 



298 



I 



11 



It I 



lit r 



3 



DUFF BROTHERS & CO. 



RYAN & DALE. 



1867. 

Jan. 10 
Feb. 15 



Mar. 16 

Apr. 15 

May 14 
June '12 



Cash 

II 
Discount No. 11 
Check 

Discount No. 16 
Checks 
Cash 

Certified Check 
Cash 

// 
Checks 
,". ;:C0 




Deposits. 



Balance. 



1000 
1000 
3284 05 



June 30 Balance 



1100 




895 50 


2200 




6500 


800 




1 

1 

2000 
2100 


500 






^12170 


55^1 


16779 


55 16779 55 




12179 55 



4184 i 05 



2879 



55 



8579 55 
10579 55 

I 

12179 55 



BARCLAY, HOPE & CO. 



1867. 

Jan. 10 Cash 

, Discount No. 3 

Check 
Feb. 15 Collection 
Mar. 16 Cash 

Check 
May 14 Discount No. 23 
June 12 // « 29 



1500 



1100 



800 ! 
1789 20 

1600 
1400 

783 60 
1164 40 



JAMES CARVER. 



1807. 

Jan. 10 Cash 

Discount No. 4 
Feb. 15 Collection 

Checks 
Mar. ,16 // 
Apr. 15 Discount No. 18 

Cash 
May ,14 Checks 




1089 20 
2689 20 



2989 20 
8772 180 
4937 120 



600 








1590 


40 


2190 


40 


1200 












2090 


40 






90 


40 


2376 


80 






2100 




4567 


20 




1 


4067 


20 



18G7. I 

Jan. 10 Cash 

Discount No. 2 
Feb. 15 Collection 

Checks 
Mar. 16 « 
Apr. 1 15 Discount No. 21 
May 1 14 Checks 



1867, 

Jan 



10 Discount No. 5 
Check 
Feb. 15 Discount No. 8 

Checks 
Apr. 15 , Discount No. 20 

' Cash 
June 12 Collections 
Checks 



/•* 



*. 



1867. 

Jan. 10 Discount No. 6 

Check 
IJeb. 15 Collection 

I Checks 

Apr. 15 Discount No. 19 

Cash 
May 14 Discount No. 24 

I jj Protest on No. 19 
June' 12 ' Cash 

Collection 



Checks 


1)EP08IT 


i. 


Bal\m:e. 


■i 


800 


t 




994 


1794 




3528 




800 




,522 


2500 




-022 




1791 30 


3x13 30 


1400 






2413 30 

i 



W. B. ARCHER. 



1000 
3000 



1200 



LYON & HAVEN. 



1200 
2500 



1175 


60 








175 


60 


3582 


60 








758 


20 


1492 75 






0000 




12250 


95 


2744 












13794 


95 



1491 
2100 



291 



1 75 



1592 27 

4350 5833 27 

2367 20 

8198 72 
1300 
2940 12438 72 



The red figures Indicate the balance overdrawn. 

301 



A. B. HUNTER. 



18C7. 

Feb. 15 Cash 

Mar. 16 Discount No. 14 

I Cash 

I Checks 

Apr. 15 Certified Check 

June 12 Discount No. 28 
Cash 



CflKCKa 


. 


Deposits. 




1 


400 




' 




1492 
1100 


50 


300 








1000 












1774 


80 






1200 


1 1 


1 






, i 



Balance. 



2692 
1692 

4667 



50 
50 

30 



GENERAL LEDGER, 



ROY, WADE & CO. 



h ' i 



1867. 

Feb. 15 Discount No. 10 

I 11 Check 
Mar. 16 Checks 
Apr. 15 Cash 
, May 14 Discount No. 24 







1774 


50 




1000 








774 ; 


1000 




3700 




3474 1 


V 


1 


1754 


10 

! 


5228 



50 



J. W. BURNHAM. 



1867. 


« 














Mar. 16 


Discount No. 15 






2388 












Cash 






1600 












Checks 


1200 








2788 




Apr. 


15 


'Cash 






1950 




4738 




June 


12 

t 


Discount No. 27 

1 


1 




1569 


87 


6307 

1 


87 



CITY NATIONAL BANK 



JANUARY, 1867. 



1. This book, like the Ledger in any other business, is the book which exhibits all the 
results of the business. In the present instance it is made up exclusively from the Journal. 
In a business in which that book is dispensed with, the Ledger is made up from the Gene- 
ral Cash Book, as in our Private Banker's Books. But, as we stated, notes pp. 261 and 
269, we have arranged the Receiving and Paying Tellers' Cash Books so as to admit of 
direct posting to this Ledger, When that mode of keeping the books is adopted, these 
two books will be auxiliaries to the Deposit and the General Ledger. 

2. From this book the monthly and semi-annual statements are made out. 

3. Havitig given indexes to all the Ledgers in the first three parts of this work, we omit 
them in the fourth part. 

4. The Taxes on the profits, circulation, and deposits of the Bank, being payable in July 
and January, could not be practically exhibited here. 

5. Before closing, a Trial Balance must be taken. We have made the closing entries on 
the face of the Ledger. Those who prefer journalizing them can do as we have done with 
our Rail Road accounts, pp. 334 and 335. 



CERTIFICATES OP DEPOSIT. 



1867. 

Apr. 15 R. P. Duff, 
I I H. P. Ford, 
May 14 ! G. R. Duncan, 
June 12 ' R. P. Duff, 

j G. R. Duncan, 



No. 1 
2 
3 
1 
8 



2100 
1200 




2100 
2400 
1200 




4500 
5700 

2400 


• 











303 



302 



I! 



i< I 



1 

i 



Dr. 



CAPITAL 



STOCK. 



Ck. 



June ''^0 I>uIanco 



o 




31 



1866. 

1867. 
Jan. 1( 



Cash 



June 30 Balance 



1 300000 { 

300000' 
600000 

600000^ 



CASH 



ACCOUNT. 



isee. 


1 


Dec. 


31 


1867. 




Jan. 


101 



Sundries 

Capital Stock 

Sundries 

Circulation 

Feb. 1 15* Sundries 

Mar i 16| // 

Apr. 1 15| // 

May 14| // 

June 12 '/ 



June 30' Balance 



300038 50 

300000; 

15300 
160000 
261200 
117400 
101633 34 

89896 

43308 44 



1866. 
Dec. 

1867. 

Jan. 



31 
10 



Expense 
Sundries 



1388776 28 



603847 54 



U. S. Bonds 
Feb. 15^ Sundries 
Mar. 16 tf 
Apr. 15 " 

M!ay '14| « 
June ! 12| w 

,;:;0. r::::i::cc 



200 



1, 200600 
1 1 56066 66 
l' 300000, 

1 126600 ' 

2 39033 ; 33 

2 33265 

3 12903 75 
|3i 16260: 

f. 5 J rC'V'M"^ 1 54 

1388776 28 






UNITED STATES 



BONDS. 



18CT. 

Jan. 10 Cash 

// 
Feb. 15 'f 



June 30 Balance 



200000 
300000 
100000 

600000 



600000 



1M7. 



Halanco 



GOOOGO 



600000 



304 



I 



' 



Dr. 



DEPOSITORS. 



Cr. 



1867. 




Jon. 


10 


Cash 


Feb. 


15 


// 


Mar. 


16 


II 


Apr. 


15 


II 


May 


14 // 


June 


12 // 




30 


Balarue 



' 


: 


T "" 


1867. 


i 


i 








1 


7900 




Jan. 


10 


Cash 


1 


12300 




1 


18600 


, 






Bills Discounted 


1 


11958 


87 


te 


10300 




Feb. 


15 


Cash 


1 


21164 




» 


8500 








Bills Discounted 


2 


14267 


60 


3 


4903 


75 


Mar. 


16 


Cash 


2 


6800 




3^ 


, 8300 








Bills Discounted 


2 


7164 




5 


1. 


'.ii ; 

1 


Apr. 


15 


Cash 

Bills Discounted 


2 
2 I 


51100 
7253 


12 








jMay 


14 


Cash 

Bills Discounted 


3 
3 


12788 
6062 


30 






f 

f 


June 


12 


Cash 


3 


18984 




1 




66 


June 30 

> 

! 


Bills Discounted 


8 


9014 
178856 


77 


i 


178856 


66 


i 

1 
1 


Balance 


120352 


91 



FOREIGN BILLS 



OP EXCHANGE. 



1867. 

Jan. 10 Cash, 

Mar. 16 // 

Apr. 15 II 

June 12 II 



No 



.A 

2 2 

3 2 

4 3 



III 



1867. 



44444 44 Jan. 12 Baring Bros. & Co. No. 
22222 22 iMar. 16 // 2 2 



,..1 



20000 
2000 



Apr. 15 
June 12 



88666 66 






3 % 

4 3 



BILLS 



DISCOUNTED. 





- 


V 


1867. 






Jan. 


10 


Sundries 


Feb. 


15 


n 


Mar. 


16 


II 


Apr. 


15 


II 


May 


14 


II 


June 


12 


II 



June 30 Balance 



BANE 



FURNITURE. 



1867. 

Jan. 10 Cash 




U 



305 



44444 44 
22222 22 

20000 
2000 

88666 66 





\ \ 

I 12100 

1 14400 

2 7200 

2 7300 

3 6200 


1 

1867. 

Teb. 15 

Mar. 16 

Apr. 15 

iMay 14 
Jiine ,30 


Cash 

// 
// 

Balance 


t 
1 

2 
2 
3 


1 

7900 

18600 

7200 

5700 




8 9200 i 
56400 








i 
i 









56400 




i 17000 

i 1 i 


' 



I ; 



H 



I 



i:' 

III 



::i. 






S Br. 



DISCOUNT 



ft 



INTEREST. Cr. 



1867. 

June 130 Profit & Loss 




' 1808. I I 

18724 78 Dec. 31 Cash 

ill 1867. j 

IjJan. 10 Bills Discounted 

Feb. 15 // " 



18724 78 



Mar. il6 
Apr. 15 
May 14 



// n 

Cash 

Bills Discounted 
June 12 Cash 

Bills Discounted 



1 


38 


50 


1 


89 


13 


2 


66 


40 


2 


36 




2 


34 


88 


3 


18000 




3 


87 


70 


3 


204 


94 


3 


167 


23 




18724 


78 



EXPENSE 



ACCOUNT. 



1866. 

Dec 31 Cash 

18«7. 

Apr. 15 If 



1 

2 



200 

2975 
3175 



1867. 

June 30 Profit & Loss 



f 5 



EXCHANGE 



ACCOUNT. 



18W. 








Jan. 


10 


Cash 


1 


Feb. 


15 


II 


1 


Mar. 


16 


n 


2 


Apr. 


15 


If 


2 


May 


14 


II 


8 


June 


12 


II 


3 




30 


Profit & Los^ f 


5 



I 1867. \- 

2222 22 • Jan. 10 Bills Discounted 
116 Feb. 15 Cash 

1189 11 Bills Discounted 

1290 Apr. 15 Cash 

62 Bills Discounted 

218 May 14 Cash 

4131 34 Bills Discounted 

; June 12 Cash 

Bills Discounted 



9228 67 



!i 



CIRCULATION 



ACCOUNT. 



1867. 

Apr. 15 Cash 

June 



11 



s 



500 

47'.'r»0O 



480000 



1867. ' ! 
Jan. 10 Cash 

• Feb. 15 // 

• Mar. 16; '/ 



June 30 Balance 






306 



3175 



3175 



1 


52 


1 


136 


2 


66 


2 


2666 


2 


12 


3 


4112 


3 


50 


3 


2116 


3 


18 



67 



9228 ! 67 



1 160000 

1 232000 

2 88000 

480000 , 



479500 I 



Dr. 



IRON CITY 



(Pittsburgh.) NATIONAL BANK. Cr. 4 



isr.T. 

Feb. 15 Cash 

Mar. 10 // 

May 14 n 

June 12 '/ 



June 



30 Balance 









1867. 






i 


3564 I Jan. 10 


Casii 


2 


1782 Mar 16 


II 


3 


1980 lApr. 15 


II 


3 


2772 May 14 


Protest 


1 




i 


.JUllC /M> 


Kaiancc 




10098 




1 

1 

! 






1 
1 


5896 

1 







1 


1000 


2 


1200 


2 


2000 


3 


2 



FIRST NATIONAL (ChicagoO 



BANK. 



1867. 

Jan. 10 Cash 

Feb. 15 II 

Mar. 16 // 

June 12 // 



1 
1 
2 
3 



500 

792 
1188 
2970 



fi 1867. 

! Jan. 10 Cash 

,j Mar. 16 n 

jjApr. 15 II 

May 14 n 



1 
2 
2 
3 





;;it 


r.alanco 


i" 


14000 











June 30 Balance 



FIRST NATIONAL (New Orleans.) 



BANK 



1867. ■ i 
Jan. 10 Cash 
Feb. 15 " 
Mar. 16 '/ 

Jur.c ;)0 Ualancc 



1 
1 

2 



1000 
3528 
2352 

9700 



1867. 

Jan. 10 Cash 

Mar. 16 " 

Apr. 15 N 



1 
2 

2 



June 30 Balance 



BARING 



(London.) 



BROS. & CO. 



1867. 



1867. 



Jan. 12 Foreign Bill, No. 1 1 44444 44 Apr. 15 Cash, 

Mar. 16 u n 2 2 22222 22 | May 14 

Apr. 15 // // 3 2 20000 

June 12, w // 4 3 2000 

88666 66 

i 1996 49 



jAne 30 BalanqiB 



No. 1 2 

2 3 

June 12 '/ for No. 3 refd. 3 

oO Halaucc 1' 



BANK OP 



(Montreal, Canada.) 



MONTREAL. 



1867. 

May 14 Cadi 



3 


3564 









FIRST NATIONAL 




(Boston.) B- 


1867. i 
May 14 


Cash 


1 
3 


2394 




1867. 1 1 
May 14 Cash 












i 












ao7 



BANK 



10098 



1500 
1600 
4000 
6900 

14000 

8550 



50U 
1200 
8000 

9700 

2820 



I 



26666 67 
40000 
20003 50 

•n 

88666 66 



2394 






r^^ 



I 



! i 



^ 



ii 



'•M 



R..i 



11 •• 
1 1 
I 

I. 



B-^^ 






II Dr. 



PROFIT 



& 



LOSS. 



Cr. 



1867. 

June 30 Expense 

, Dividend No. 1 
Surplus Capital 



i il 

fl3 3175 
5 18000 
5 3681 12 

24856 12 



1867. 

June 12 Cash 3 

30 Discount & Interest f 3 

Exchange 3 



l! 



2000 

18724 78 

4131 34 

24856 12 



DIVIDEND 



No. L 




SURPLUS 



CAPITAL. 



1! 




1867. 






• 


1 


June 30 


> 

i 




■ 


1 





f 5 



BALANCE 



ACCOUNT. 



ISflT. 
June 3( Cash 

U. S. Bonds 
! j Bills Discounted 
Bank Furniture 
, Bank of Montreal 
I Baring Bros. & Co. 
Iron City Nat. Bai^ 



T 



1867. 



I I 



f 1 603847 54 June 30 Capital Stock 



1 600000 
2,1 17000 

2 600 
4 3564 

4 1996 49 
4 5896 

1232904 03 



Depositors 

Circulation 

1st Nat. Bk. N. Orleans 4 

1st Nat. Bk. Chicago 4 

Dividend No. 1 1 5 

Surplus Capital 6 



f 5 18000 



3681 12 



f 1 600000 

2 120352 91 

3 479500 
2820 
8550 

18000 
3681 12 



1232904 03 



DIVIDEND BOOK, CITY NATIONAL BANK 

Diyidend UTo. 1, Three per cent., declared June 30, 1867. 




Archer, W. B. 
Baker, J. C. 
Barclay, Hope & Co. 
Banks, Robert 
Cox, J. W. 
Comptou, J. R,. 
Duff, Wm. H. 
Duff, P. 

Duncan, Geo. R. 
Harper, James 
Hay, Wm. 

Irvin, Richard. & Co. 
Lenox, Harriet 
Lenox, Robert 
Mitchell, Thos. 
Major, Wm. 
Root, R. C. 
Smith, T. B. 
Ward, John 
Warren, Samuel 



2000 
100 
300 
600 
100 

20 
100 
100 

30 



Amount. 

6000 

300 

900 

1800 

300 

60 

300 

300 

90 



Bate. 



Beceived Paymeui. 



600 


1800 


1 


200 


600 




100 


300 




50 


150 




100 


300 




600 


1500 




300 


900 




100 


300 




100 


300 


1 

1 


500 


1500 




100 


300 





6000 18000 



1. When a stockholder calls for his dividend, the book-keeper fills a check for th« 
amount, as follows : — 




Eity Hatitaal Saak, 




eatei. 



a/u {m^iVliamrh ^. -fiTolzeT, Esq., &t 
!« Bix QClioubscundL ' .„ Woiia 



"/ 



d cha\ 



•iae 



eooo.f^ 






'. J. (Pob'r'keT, 

General Book-keeper. 



308 



The date is then inserted in the 'Mate" column above, and the drawer of the dividend in- 
serts his signature in the '^ Received Payment" column, opposite the amount of his dividend. 

2. Dividend Checks are charged to the Dividend Account, in the same manner that De- 
positors' Checks are charged to individuals. When all the dividends are paid, "Dividend 
No. 1," in the Ledger, will be balanced. 

309 



Y 



I 



M 



n 



H:l 






'1 



!M 



a> 



CO 



II 



o 
o 
o 
o 
o 



(M 

CO 

o 

(M 



o 

CO 



o 


o 


T-+ 


lO 


o 


30 


la 


o 


•r> 


GO 


QO 


70 



O 


:3^ 




o 


o 




lO 


Od 




o 


09 




CO 


Od 




-* 


1-4 
1— 






n 

aa 

< 



"^ 




I 


-* 




kO 






la 




o 


h- 


O 


b- 


o 


o 


^ 


o 


Tj+ 


o 


o 


CXD 


o 


QO 


o 


o 


CO 


o 


CO 


o 


<M 


<M 


CO 


o 


Tt« 


'^ 




»-» 


CO 




«» 






«» 





I 
I 



OS 

43 



no 

d 

o 



a 
o 

OQ 



cc J2 



f-) 

fl 
u 

a 

e3 






fl 

o 



o 



e3 

fl 

O 



3 =^ -^ 



C4H 

o 

M 

fl 



o 



^ 



fl 



OQ 

(U 

rfl 

o 

■73 

fl 

en 
o 



t) pq pq M pq ^q :z; 



o 
310 



o 

OQ 

<s> 
u 

H 



o 

fl 

o 

% 



STANDING LEDGER. 

KICHAKD IRVm & CO. 



Date. 



Payable by. 



1866. 

Dec. 14 J. W. Loring 
Oct. 8' Hay & Wood 

1867. 

June 10 K. Banks 



'A o A.S 

discounter. ^^ VM^t^- endorser. 



3000 
2400 



Due. 



M**" 



4000 



1867. 

Mar. 17 Paid 
,11 H 

Oct. 13 



LYON & HAVEN. 



1866, 



Dec. 14 Bateman & Hill 

1867. " 

Feb. 11 J. Morton 
lull J. Kane 




1200 



1867. 

Feb. 15 Paid 



If 



Mar. 16 

May 14 Protested 



1 Some call this the "Blue Book." The form and two illustrations which we give will fully ex- 
plain its use and importance to the President and Directors. In business it is indexed, which enables 
them to refer to it and see at once what every borrower is liable for as promisor or endorser. 

2. The entries are made from the Discount Book as the notes are entered on that book. 



REGISTER OF STOCKS. 



Purchased. 



Due. 



Description. 



1867. I 1881. 

Jan'y.l 2 Feb. 



1881. 



25 



Jan*y. 



1881. 



Feb. 



10 Feb* 25 300 Bonds U.S. 5/20s of $1000 

each, 4th Series, Nos. 20001 to 
20300 



15 



1881. 

Feb. 



25 : 100 Bonds U.S. 5/20s of $1000 
each, 4th Series, Nos. 30001 
to 30100 



Amount. 



100 Bonds U.S. 5/20s of $1000 ) 
each, 3d Series, Nos. 19001 to \ 
19100 ) 



Jan'v 2 Feb. 25 100 Bonds U.S. 5/20s of $1000 ) 
^' ' each, 4th Series, Nos. 1201 to [ 

1300 ) 




Interest is 
due. 



May 1 

and 
Nov. 1 



May 1 

and 
Nov. 1 



May 1 

and 

Nov. 1 



May 1 

and 

Nov. 1 



Remarka. 



This book records all stocks and bonds the property of the bank, and when the interest is payable. 

311 



1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

9. 
10. 
11. 

12 

13. 
14. 
15. 

16. 

17. 

18. 

19. 

20. 

21. 

22. 

23. 

24 

25. 

26. 

27. 

28. 
29. 
30. 
31. 
32. 
33. 
34. 

35. 
36. 



QUESTIONS FOR EXAMINATION ON NATIONAL BANK ACCOUNTS. 

When is the General Cash Book a book of original entry? (N. 1, p. 247.) 
What is it made up from? (N. 1, p. 247.) 
What should its balance agree with ? (N. 1, p. 247.) 
Do banks generally keep adjournal ? (N. 1, p. 253.) 

When it is kept, what book receives all its entries from it? (N. 1, p. 253.) 
What does the Stock Ledger record ? (N. 1, p. 257.) 
Where are its entries first obtained? (N. 1, p. 257.) - 
Upon what book are the transfer entries first recorded? (N. 1, p. 257.; 
What must the aggregate credits of the Stock Ledger agree with ? (N. 2, p. 257.) 
Why are its accounts kept in alphabetical order? (N. 3, p. 257.) 
Where do the amounts of the Receiving Teller's Cash Book pass when a General Cash 
Book is kept? (N. 1, p. 261.) ^ 

When no General Cash Book or Journal is kept, where are the contents of this book 

posted? (N. 1, p. 261.) 
What is the use of the Signature Book ? (N. 1, p. 268.) 
Who should witness the signatures? (N. 1, p. 268.) 
Where is the balance of Cash on hand found when no General Cash Book is kent ? 

(N. 1, p. 269.) ^ 

How can a Certificate of Deposit be negotiated? (N. 1, p. 274.) 
What is the use of the Ofi"ering Book ? (N. 1, p. 275.) 
Where are the Accepted Notes and Bills entered? (N. 1, p. 275.) 
What is done with Rejected Notes and Bills? (N. 1, p. 275.) 
What is done with Discounted Paper when protested? (N. 1, p. 278.) 
What is done with Protested Collection Paper ? (N. 2, p. 282.) 
Where do we enter all paper remitted for collection ? (N. 2, p. 290.) 
Where do we enter Discounted Paper when collected ? (N. 3, p. 290.) 
Where do we enter collections when paid ? (N. 3, p. 290.) 
What do we record in the Foreign Bill Book ? (N. 1, p. 280.) 

Why not enter them on the Discount Book, as we do all other paper belono-ine to the 
bank ? (N. 1, p. 280.) ^ ^ "" ^ 

Where are all Notes and Bills entered when received for collection ? TN. 1 and 2 

p. 287.) ^ 

What is t^e Tickler used for? (N. 1, p. 293.) 
What accounts are kept in the Depositors' Ledger? (N. 1, p. 297 ) 
When are they closed ? (N. 1, p. 297.) 

What must the aggregate balances of this Ledger agree with ? (N. 2, p. 297.) 
How are overdrawn balances indicated? (N. 1, p. 301.) 
What Ledger exhibits the results of the business? (N. 1, p. 303.) 
What book are the Monthly and Semi-monthly Statements made from ? (N 2 n 
303.) V • .' F 

What account do we debit for the Dividend Checks ? (N. 2, p. 309.) 

How will the account ''Dividend No. 1" stand when all are paid ? (N. 2, p. 309.) 



DUFF'S BOOK-KEEPING. 



RAIL ROAD ACCOUISTS. 



JANUARY. 1867. 



313 



312 






'■A 



EEMARKS. 

V 

The following set of Rail Road accounts illustrates in a condensed form the construction 
and equipment^of the road, the commencement of its operations, and the declaration of the 
first dividend. Part of the earnings are carried to credit of the Stock, part to the DiYi- 
BEND, and part to the Surplus Capital. 

The forms of Manifests, Bills of Lading, &c. are among the best in use j but Rail Road 
and Express Companies vary all these forms to adapt them to changes in business.. 



i: 



314 



KAIL EOAD ACCOUNTS. 

CONSTRUCTION AND EQUIPMENT DAY BOOK. 

PENNSYLVANIA RAIL ROAD, 

JANUARY, 1867. 

1. This book is ruled with a date and voucher column on the left: the next two are for 
the titles cif the account and the items of expenditure. To the right of these are eleven 
money columns, each of which has its representative account in the General Ledger. 
Compare and see. 

2. The figures in the Voucher column are the numbers which are endorsed upon them as 
they are filed away for future reference. 

3. When the footings are brought forward to the end of the month, bring them under 
the amount in the Depot column on the left. From the aggregate footing make the Jour- 
nal entry. See Journal entry of January 31. 

4. The Incidentals should be designated '^ Construction Incidentals," in the Journal, as 
there is another account of the same name in Operating Expenditures. 

5. The entries in this book are made from the vouchers, and are, as the Journal entrj 
indicates, cash payments. 






» 



315 



h 



CONSTEUCTION AND EQUIPMENT, 



11 





s 




Date 


"1 What Aeeoiut. 




1866. 






Jan. 


4 1 Surveying 


Pd 




8 2 Land 


// 




9 3 Incidental Exps. 


II 




12 4 Grading 


II 




14 5 Depots 


II 




15 6 Road Building 


II 




16 7 Bridging 


" 




18 8 Tunneling 


II 




19 9 Locomotives 


II 




1 do. 


II 




10 Cars 


II 




21 11 Fencing 


II 




12 Incidental Exps. 


II 




13 do. 


II 




14 Fencing 


// 




15 Cars 


// 




1 16 Depots 


// 




22 17 Road Building 


// 




18 Lands 


// 




19 Surveying 


II 




20 Bridging 


II 




21 Depots 


II 



22 Grading 



23 Incidental Exps. 




24 24 Bridging 




25 Tunneling 




26 Grading 




27 Locomotives 




28 Surveying 




29 Cars 




30 Lands 




31 Road Building 




32 Fencing 


II 


33 Depots 


n 


26 34 Incidental Exps. 


II 


35 do. 


II 


36 Depots 


II 



37 Cars 



For what paid. 



, E. H. Heastings 1 rao.'s Salary to Jan. 1st 
J. Cartwright, for Right of Way, per Deed M'ch 4, 1866 
W. S. Haven, for Blank Books 

Jacob Ring, Excavating 21000 vds. @ 10^ $21' )0 

Less 20% retained 420 

Passal and Hay, building Freight Depot at Harrisburg 

Knap, Ward & Co., for R.R. Iron 

Carpenter & Co., Bridging Wood Run, per Contract 

Hall & Oxley, for Tunneling Bills Hill, // " 

Pillow & Lens, for Locomotive and Tender "Locomotive" 

// II II II It II "Driver" 

Kirk & Rhodes, for 5 Freight Cars, @ $500 each 
Burns & Shell, for Fencing 350 Rods, @ $1.00 
H. Greeley, for Advertising 
J.G.Bennett, " 

G. Wood, for Fencing 160 Rods, @ $1.00 
Kirk and Rhodes, for 3 Passenger Cars, at $2000 each 
J. Burchinell, for Freight and Passenger Depot at Altoona, 

per Contract 
R. Driver, Laborers' Pay-Roll for Dec. 1866 
Adam Oaks, for 40 Acres, per Deed Jan. 14, 1867 
W. Maxwell's Traveling Expenses 
Oliver Birch, for 9000 ft. Oak Lumber, @ 20/ 
Boyd & Murdoch, for Freight Depots at Pittsburgh, per 

Contract 
Excavating on Section 14, 4000 yds., @ 10 
n II 15,3000 II @20 

n II 16,2500 // @20 



$400 
600 
500 

$1500 
300 



Less 20% retained, 

Telegraphing for one month 
F. Freeman, Bridging Red Run, Sec. 31 

Piper & Wood, Tunneling Coal Hill, '/ 27 
Murphv & Hill, Grading Roads Hill, // 21 
Sterling & Brown, for Locomotive and Tender "Velocity" 
J. Camp, 4 mos.' Salary to date 

Painter & Carpenter, for 2 Pass. Cars, @ $2200, per Contract 
R. Stone, for Right of Way ,100 ft.wide, per Deed Jan. 23,1867 
Freight & Duty on R.R. Iron received per Ship from Li- 
verpool 
Samuel Graves, for 1600 Rods, @ 75/ 
J. & A. Patterson, for Building Depot at Pittsburgh, per 

Contract 
W. S. Haven, for Binding and Stationery 
Daiiv Commercial, for Advertising to date 
Carpenter & Co., for Building New Office at Pittsbrrgh Pas- 
senger Depot 
Kirk & Rhodes, 6 Cars, @ $400, per Contract 

Amounts carried forward 



JANUARY, 1867. 



Depoti. 



Road Building. Lands. Surveying. Grading. Bridging. Tunnelling. locomotiTcs. Can. Fencing. Iici4eital 



100 



700 



130 



1680 



6000 



4400 



1300 



3800 



7000 
7000 



2500 



7600 



1500 



9400 



800 



350 



160 



40 
35 



6000 



80 



1800 



1200 



170 



4900 



(S3 



4400 



80 



6600 



3100 



1300 



270 



850 



4400 



1200 



330 
70 



24570 



9000 



2350 260 



3050 



8000 



2400 
8200 20600 15300 1710 



670 



316 



317 



9 



CONSTRUCTION AND EQUIPMENT, 



Date. *» Wkt Account. 



/ 



For what paid. 



1867. 

Jan. 2G 



111 , 



38 Lands 

39 Bridging 

40 do. 

41 Grading 



42 Lands 

28 43 do. 

44 Road Building 

45 Incidental Exps. 

46 do. 

47 Surveying 

48 do. 

49 Lands 

31 50 Road Building 
51 do. 
52i Grading 

53 Bridging 

54 Locomotives 

55 Cars 

56 Incidental Exps. 

57 do. 

58 Fencing 

59 Depots 

60 Surveying 



fi 
n 



Amounts bro't forward, 
Pd. J. Banks, for Procuring Right of Way 
1/ Hiram Hill, for Material delivered on Soc. 1 
\V. Stone, for Bridging " 1 

R. Baker & Sons, Excavating, as follows,— viz. : 

31000 yds. on Sec. 18, 19, 20, @ lOf- $3100 

1500 /' /' 18, 19, 20, @ 20/ 300 

3400 

Less 20% retained 680 

R. Banks, for Right of Way 100 feet wide, per Deed MayT,' 

1866. 
Commission of Appraisement, for services 
for Switch Ties, 80, @ 20 
J. K. Smith, 1 mo.'s Salary to date 
R. Roberts, 1 if do. do. 

W. Morris, 3 " do. do. 

R. Manley, 3 w do. do. 

J. Wood, Right of Way 100 ft. wide, per Deed May 7 

1866 
Freight and Duties on R.R. Iron from Liverpool 
Driver's Pay-RoU for Jan. 
A. Wood, Grading Farmer's Hill 
D. Haven, for Bridging Wood Creek 
Archer & Co., for Locomotive and Tender "Ajax" 
Kirk & Rhodes, 6 Passenger Cars, @ $2200 
Team Hire this month 
"Morning Post" for Notice to Stockholders 
Robert Hall, for 1600 Rods, $1.00 
Carpenter & Co., for Building Freight Depot at Pittsburgh 
R. Patterson, Horse Hire 

Total amount pd. for Depots 

// Road Building 

» Lands 

If Surveying 

V Grading 

IT Bridging 

Tunneling 

» Locomotives 



JANUARY, 1867. * 

Road Building. Lands. Surveying. Grading. Bridging. Tunneling, locomotives. Cm. Fencing. IncideitiL 



245701 



9000 



// 
// 
1/ 
II 
II 
II 
II 

II 
II 
II 
II 
II 
II 
II 
II 
II 
II 
II 



I 



16 



2350 
110 



260 



3050 



8000 
460 



8200 20000 



15300 1710 67A 



2720 



1300 
440 



450 
300 



1890 



8484 
2600 




1 
1 



Cars 

Fencing 

Incidentals 



Journal 1. 



ToUil 



11500 

36070 

20100 

6090 

1100 

8100i 

14800 

8200 

27600 

28500 

3310 

1200 

155070 



150 



2330 



5400 



7000 



13200 



20100 



6090 



90i 
1100 



230 
70 



1600 



8100 14800 8200 27600 28500 3310 1200 



i. 



318 



319 



i 



I 



I' 



til 



CONSTRUCTION AND EQUIPMENT, 



FEBRUARY, 1867. 



litt. 



£ 

^ 



What Aeeout. 



1867. 

Feb. 



1 61 Incidental Exps. 
It ^2 Depots 

63 Road Building 
€4 Lands 
^ 65 Surveying 

66 Depots 

67 Grading 

68 Bridging 

69 Tunneling 

70 Locomotives 
n do. 
n do. 

71 Depots 
\12 \ do. 

73 Koad Building 

74 Bridging 

75 Cars 
jk do. 

76 Fencing 

77 Incidental Exps. 



II 



Pd 

II 
II 
II 
II 
II 
II 



II 
II 
II 
II 
II 
II 
II 
II 
II 
II 
II 
II 
II 



For what paii 



Dispatch, for Advertising 

J. & A. Patterson, Building Depot at East Liberty 
R. R. Spike Co., for bill of Spikes 
Z. Wainwright, per Deed May 7, 1806 
W. Moore and Assistants, to date 
R. Shrum, Building Depot at Greensburg 
J. Dignam, for Grading 93750 yds. @ 10 $9375 

Less 20 fo retained 1875 

Cox & Co., Bridging Turtle Creek 

Ames & Co., for Tunnel at Greensburg 

Baldwin & Co., for Locomotive and Tender " Kiskiminitas" 
// II II II II II "Allegheny" 

II II II II II n "Altoona" 

D. Wood, Building Depot at Johnstown 

S. Maple " II II Lancaster 

Laborers' Pay-Roll for Feb. 

for Bridges from Greensburg to Altoona, per Contract 

Kirk & Rhodes, for 8 Passenger Cars, @ $2000 
// II II 3 Baggage " @ 500 

J. Post, for 700 Rods, @ $1.00 

J. Daub, painting signboards, per Contract 

Total amount pd. for Depots 



L*epoti, 



Road Building lands. SorFoying. 



5000 



8000 



4500 



// 

» 
H 
If 
9 
# 

a 
n 



Road Building 

Lands 

Surveying 

Grading 

Bridging 

Tunneling 

Locomotives 

Cars 

Fencing 

Licidentals 



Journal 2. 



Total 



10000 
8000 



13500 



1100 



900 



Grading. 



7500 



Bridging. Tunneling. LocomotireB. Gin. Feodng. 



800 



270 



14000 



8200 



7000 
8000 
7200 



31000 

18000 

1100 

900 

7500 

14800 

8200 

22200 

17500 

700 

11 800 

122700' 



18000 



1100 900 



820 



I ( 



7500 , 14800 



16000 
1500 



8200 22200 17500 



700 

530 

700 800 



821 






1 ■ I 



h' 



I 



FORM OF A LOCAL BILL OF LADING. 



C. A. CARPENTER, FREIGHT A«ENT, PITTSBITRGH, PA. 



in HU ^o<,<. oraer, >He '"''<>''''«' ''ZZ:^Jh: l:lrTc:nZn:: pZin, Fre^, ana C,ar,». in 

€U. 

par funds, as per TaHff ftates. . ^. ^ * ^. 

It 1. acreed, and Is part of the Conrfderatlon of this Contract! 

1 That all goods received for transponation shaU be properly pac.ed. and distinctly marked with the name of the consignee and the Station 

""^1. ^That^htp^nTyV/auia Bail Road Company shall not ^e «.^nsible fo^^^^^^^^^^ 

eoldtor for anv loss, injury, or damage from the dangers of ra|l ''"'^^ transportation^ IhefJaud or gross neglgence of said Company or its servants; 
SefC or from iny cause whatever, unless the same be proved to .''''^e CKicurred from '»>« J^*^^ °%«™dg are intrusted to any other Company or person 
noVUable for an/damage to glass or fragile articles, unless h«reV° «?«"''' -^ '««^'3^;^-^^ selected shall be regarded exclusively as the 

(Which said Pennsylvania R:iil Eoad Company "hereby *"t»»°""d »° f,<'\;„'^^^^°'^P"^ghIll not in any event be responsible for the negligence or 
Agent of the owner, and as such alone liable; »nd the Peo^^yJ^^Ji'^R?;'' «°/^ Road Company be liable for any loss or damage 

non-performance of any such Company or person ; nor in any event shall '''^J^^^^^^^P^'afe days after the time when said property has or ought 

^IriTee^^elil^e^^i^'x^hf g'o^d^S^^^^^^ '-'-'^-^- ^'^ ^^'^^^^ °' '''''''' "''' '''"''' '" "" 

"ISH aiSSES^^^S^eJKSS:! tS^^-Oe^ts or Warehouses of said Company. 

t ^'un"p^S.TrC^«oL:'pSrMrh7s!'ind like ^ 
., t^e C^m^ny!from the moment such articles are delivered from the cars ^ djrect^ or m^^^^^^^^ ^^^^^ ^^ ^^^ ^^^ arrival or 

'^'ilf^f^S^or'.t "c^p^nf ^fndlr^J^sTilf rtldin^ ro'fommenc^ upon the shipment of the goods from this Station, and to terminate 
when unloaded from the cars. — -— - 



■1>J1J^TIJS.S. 



.A.IITICX.ES. 



FORM OF A THROUGH BIL L OF LADING. 

«KIIHSYI*¥JLHIJL BJLII* B0AB COMPAMT. 

a A OABPENTER. Freight Agent, Pittsburgh, Pa. S. B. KINGSTON, Jr.. Freight Agent, Philadelphia, Pa. 
C A. OAJiri-JS. i±.m reig ^^^j^^^ BEOWN, Agent, N. . B. W. Co., Baltimore. 

H. H. HOUSTON, GENER AL FREIGH T ACENT, PH ILADELPHI A. _ 

■xjFOJsr THE I'OXjXiO'wiiTCS- coisriDiTionsrs. 

C^The owner or Consignee to pay freight »» Pti;,»,P-L'tfac?\^hat''?hVcrm'p:ny ^ilf n^ 

It is agreed, and is part of the consideration of this contract, ^nat the Company yunoio« ly ^ tj^-g or Hollow Ware, nor for injury to the 
or Queensware. the injury or breakage of Looking G asses, Glass Show Cases Picture Frame>^ ^^^ ^^^ „f perishable 

Wdden contents of Packages, nor for the l»ss in ''^'K^t or otherw^e of Grain or Coffee m ^^^S'^ «>• "^/^^ ^^^^ j^ ^ „ of Lemons or Oranges in 
Nicies, nor for damages arising to any article car^e^J^"™ '^^.^^^^''JVroviden^^^ by Firs from any cause whatkvek. while in transit 

SSes, unless covered by canvas, or loss or damage »« Goods occaMoned by Pro.ident^^^^^^^ .^ consideration of the Company 

any other Rail Road or Transportation Company, or Agent ^xxd ll'^^.^^lfiZXJj^^^^ Conditions and Provisions of this, and of such Bill of 

exclusively as the Agent of the owner or consignee and sha 1 he ^n"tled ^ '^« »'„7«^^;* °'„o7"be, in any event, responsible for the negligence or non- 
"^SAZc'^'r a-^n^s^c'^lforpa^nto; rgtn?^no^r^sh";f/r h^rpa^or^ATeK liable for any lessor injury except upon lU or their respective 

LTnircr^irorTema^rrii l^^.ll^'^^^ir^t^^tll^t'c^^^^^^^ or Agent, for loss or damage thereby, this Bill 

of Lading shall be deemed and taken as a release in full therefor merchandise is loaded into the cars of tile Company, and 

.j'XT.,3r.iS.-iTii\':;i«.^^o^^^^ ... ^. r™„ «„. . u». 

The Owner or Consignee will have his or their Agent or Kn>Pio>ees to receive ana re ra^^^ e ^^ Owner's risk, or be removed, at the 

^ Said merchandise may be retained for a'' «>Tearage8 o^Jf ^^^^^Ve^ponsfM issumed. for any loss or damage to such merchandise, 

unle^s^'Ihtliim-le'reSd in'^rS^^^ »»• '^^^'» **•» '^^^ ^''^^ '^' '^"'^ ^'^^'^ ''"^ ^^"^ ''" '^^'^ " 

on«ht to have been delivered. „,„„h„„p-i frnm such cause as would render the Carriers liable, it is expressly agreed that they 

^''^N^'Tl'J^'ac^'eV^'ing^Vis Bm Shfp'pi^l'lrr'ither Agent of the owner of the property carried, expressly accepts and agrees to all 

iU conditions, stipulations, and exceptions. 



RAIL ROAD ACCOUNTS. 

OPERATING EXPENDITURES, 



PENNSYLVANIA RAIL ROAD, 

JANUARY, 1867. 

1. The headings of the columns will sufficiently explain the use of this book. 

2. Its ten money columns have also their representatives in the General Ledger, which 
will explain themselves. — Refer to them. 

3. The final footing at the end of the month is made and Journalized like the last book. 



323 



^a^j>!>^Tiis.s. 



A-HTIOXjES. 



322 




OPERATING EXPENDITURES, 



c 



What AccoDst. 



1867. 

Mar. 



I 



1 

2 

3 

4 

5 

6! 

7 

81 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

8 36 

37 

10 38 

39 

40 

41 

15 42 

43 

16,44 

1145 

18 46 

19i47 



5 

6 



Incidental Exps. 

Track Repairs 

Fuel 

Station 

Trains 

Engines 

Cars 

Station 

Shop 

Buildings 

Oil & Waste 

Incidental Exps. 

Fuel 

Station 

Trains. 

Shop 

do. 

Engines 
Cars 
Track 
Buildings 
Oil & Waste 
Incidental Exps. 
Fuel 
Train 

do. 
Station 
Shop 
Station 
Engines 
Cars 
Incidental Exps. 

do. 
Track 

do. 
Fuel 

Incidental Exps. 
Oil & Waste 

do. 
Incidental Exps. 
Building 
Cars 
Engine? 
Station 
I do. 
Trains 
Shop 



For what paid. 



Pd. W. G. Johnston & Co., for Blanks and Stationery 
Whitmore, Wolff, Duff & Co., for Spikes 
James Oak, for his Bill of Wood 
Wm. Ward, 1 mo.'s Salary as Supt. 
Pay-Boll for Feby. 

Mitchell, Stevenson & Co., for Castings 
Kirk & Rhodes, for Glass 
W. Darsie, 1 mo.'s Salary 
Craig & Co., for 3 Stoves 

Carpenter & Co., for Repairs to Pittsburgh Depot 
Childs & Co., for 5 Bales 1500 lb. Cotton 
W. S. Haven, for Printing Cards and Wav Bills 
Darlington Coal Co., for 400 Tons Coal, (^ $2.00 
Salaries for Feb'y 
Trains, Pay-Roll for Feby. 
Geo. Dexter (Foreman), Salary to date 
Blacksmiths' Pay-Roll for Feby. 

Warden & Son, Cylinder Head for Locomotive " Driver" 
Kirk & Rhodes, for Bill of Locks, &c. 
Bell & Ward, for New Switch at Altoona 
Boyd & Murdoch, Repairs to Office 
Fleming & Bros., Bill of Oil 
R. M. Riddle, for Advertising to date 
J. A. Reams' Bill of Wood 
Brakesman's Pay-Roll for last month 
Conductor's w '/ n 

Laborers' « n n 

Machinists' ti n n 

Watchman's Wages 

Craig & Co., Repairing Pipe and New Pipe for " Velocity" 
Jas. Sawyer, for Oak Plank 
Daily Post, for Advertising 
J. Bailey & Co., i> 
Pay-Roll for M'ch 4 
II II II II 6 
J. Day, 150 Tons Coal delivered at Johnstown 
W. S. Haven's Bill for Pjinting Tickets 
F. Sellers & Co., for Oil 
B. C. & J. H. Sawyer, 1200 lb. Grease, @ 8/ 
W. G. Johnston & Co., for Office Stationery 
Hugh Beatty, for Painting Depot at Pittsburgh 
E. Edmunson & Co., for Upholstering 
Paine & Co., for New Spark-Catcher for " Ajax" 
W. White, 1 mo.'s Salary as Freight Agent at Pittsburgh 
D. Hill, I! " Passenger n n n 

A. Black, 1 mo.'s Salan' as Freight Conductor 
J. Woodwell & Co., for'Tools 

Amounts carried forward 



324 



MARCH, 1867. 



Station. 



150 



200 



160 



140 
30 



180 
120 



980 



Trains. Engines, ! I Can. Track. Buildings. Oil k Waste. FneL lieidertab 



45 



80 
420 



1365 



390 



2300 



1600 



940 



560 
440 



50 



3650 



190 



60 



150 



130 



30 



170 



180 



190 



110 



120 



80 



220 



75 



180 



130 



120 



1 ti 



1 1 



150 



370 



250 



800 



110 



180 



300 



350 
96 



120 
110 



60 
30 



530 



500 



470 



480 



846 1400 930 



325 



Ot^ERATING EXPENDITURES, 



I ; 1 






Date. 



TT¥ 



:c=c: 



What Account. 



I 



•1 i 



L 



1867. II I 

Mar. 19 48 Shop 
I 49 Track 
! '*// do. 
20 50 Buildings 
24 51 Cars 

52 do. 
26,53 Trains 

&4 do. 

55 Incidental Exps. 
t 56 do. 

28 57 Fuel 
!68 Oil & Waste 

29 59Statioii 
' 60 do. 

61 Shop 
162 do. 

63 Trains 

64 Oil & Waste 

165 Fuel 

166 Trains 
t67 Shop 
1 68 Station 

69 Engines 

70 Cars 

71 Track 

72 Buildings 
)73 J^iation 



30 



SI 



I 



For what 



w 



Amounts bro't forward 
Pd. J. Gardiner, for Horse Hire 1 month 
" Repairs on Division No. 7, in Feby. 
// • // w II II 9, '/ '/ 

// Masons' Bill at Philadelphia 

for 14 Water Coolers, @ $5 

Wilson & Co., Bill of Lamps and Fitting 

Watson's Salary as Passenger Conductor 

Gray's '/ n » " 

H. Tunier, for Trunk Lost 

Kay & Co., Freight '/ 

A. Bell, for Wood 

B. L. Fahnestock & Co., for Oil 

Wilson, Freight Agent at Altoona, Salary for this month 
Hay, Passenger ii n n " " " " 

G. Dexter (Foreman), Salary for this month 
Blacksmiths' Pay-RoU for this month 
Brakesman's n n *' 

for Rags and Tallow 
Baird & Sons, 700 Tons Coal, @ $2 
Fireman's Pay-Roll for this month 
Machinist's " " " 

W. N. Davis, Salary for this month 
Machinists at Philadelphia 
Warren & Lee, of '/ 
for New Rail on Sees. 17, 18, 19, & 24 
for Enlarging Ofl&ce at Pittsburgh 
Secretary & Clerks' Pay-Roll at Philadelphia 

Amount pd. for Stations this month 



M 

ft 
II 
II 
II 
II 
II 

n 
I u 
II 
n 
II 



u 

w 

B 
H 
W 
W 

n 
» 
II 



II 
II 
II 



II 
II 

» 

u 
II 



II 
II 
II 



Shop 
Trains 
Engines 
Cars 
Track ii 
Buildings 
Oil & Waste 
Fuel // 
Incidentals 



Jour. 2. Total Operating Expenditures for March 



826 



MARCH, 1867. 



Station. 



980 



140 
110 



Trains. 



Engines. 



2800 3G50 
30 



200 



1670 



3100 
4305 
52801 

4200 

5100, , 

4400i 

2160 

1105 

2880 

1230 

.S3760 



80 
420 



60 
60 



530 



1475' 



530 



980 



4305 



5280 



Cars. 
500 



Track. |l Buildings. Oil & Waste. Fuel 



70 
60 



3670 



470 

440 
160 



480 



846 1400 



Iieideitik 
930 



4470 



P 320 



¥ 



y 



4200 



5100 



3330 



4400 



90 
210 



80 



204 



55 



1400 



1360 

t 

2160 



1105 2880 1230 



327 



II 



t 



w 











?5 



H g 
P4 



^ 



> 

P4 



^ 









|H <t! 'fc. 









TO I 
OOLLEC 






LID. 




3 




- 


Sri 








4 




BATI. 


6 
1 


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s 

OQ 









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o 
o 

M 

H 
ft 

H 



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o 
i-» 

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O 

O 



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C 



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5 

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03 

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125 

O 
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p 



EAIL ROAD ACCOUNTS. 

OPERATING RECEIPTS, 



PENNSYLVANIA RAIL ROAD, 

JANUARY, 1867. 

1. The headings of the columns of this hook fully explain their use. Its three money 
columns nave their representatives in the General Ledger. 

2. There are four columns used in Rail Road Accounts ; but, as I cannot see any use for 
the fourth column for totals, I have used only three of them, bringing the aggregate into 
the Freight column at the end of the month, from whence they are journalized. See 
Journal entry, March 31st. 






I 



OQ 



l! 



329 



.CD 



-+^ 



i 

6 



328 



• I 



I OPERATING RECEIPTS OP P. R. R. FOR MARCH, 1867. 



I '' ' i 



( 



Date. 



Name. 



Mar. 



Geo. Brown 
J. W. Vann 
Hiram Fish 
J. Scott 
W. Wills 
R. Weed 
J. Powers 
W. Ryan 
J. Hilton 

B. Ray 

C. King 
R. Howe 

- U.S. Mail 
do. 
do. 
do. 
do. 

15" J. Powers 
R. Weed 
i W.Wills 
f J. Scott 
Hiram Fish 
I J. W. Vann 
Geo. Brown 
H. Lee 
C. Dickson 
R. Bill 
J. Watson 
W. King 
B. Hagan 
31 , R. Weed 
j J. Powers 
W. Wills 
! Geo. Brown 
J. Scott 
J. W. Vann 
Hiram Fish 
J. Watson 
,, R. Bill 
I C. Dickson 

B. Hagan 
,, W. King 
li U.S. Mail 



Stetion. 



Journal 2. 



Freights. Passapcs. Mails 



Greensburg 
Blairsville 
Cresson 
Altoona 
Harrisburg 
Lancaster 
Philadelphia 
Conductor 
do. 
do. 
do. 
do. 
Pittsburgh to Philadelphia 
w H Altoona 

II II Greensburg 

// // Lancaster 

// // Harrisburg 

Philadelphia 
Lancaster 
Harrisburg 
Altoona 
Cresson 
Blairsville 
Greensburg 
Pittsburgh 
Philadelphia 
Lancaster 
Pittsburgh 
Harrisburg 
Altoona 
Lancaster 
Philadelphia 
Harrisburg 
Greensburg 
Altoona 
Blairsville 
Cresson 
Pittsburgh 
Lancaster 
Philadelphia 
Altoona 
Harrisburg 
Pittsburgh to Johnstown 

Freight 

Passage 

U.S. Mail 

Receipts for this month 



560 
340 
180 
760 
860 
640 
970 



1900 
700 
240 



712 
680 
518 
670 
530 



2200 

1890 i 

1860 

1790 

1110 

1370 

1630 

2150 



1460 
340 
490 
710 

800 



4700 
6300 
4970 
1770 
1860 
1300 
1100 



2770 
2630 
2690 
2540 
2512 



40310 

34092 

3990 

78392 



1400 

260 
500 
2590 
2610 
2470 
2330 
2840 

\ 

34092 



190 

3990 



MIL ROAD ACCOUNTS. 



JOURNAL, 



PENNSYLVANIA RAIL ROAD, 



JANUARY, 1867. 



1. This book serves for a Journal and General Day Book. The first three entries are 
original, and are first recorded in this book. 

2 These books are kept by the Secretary, who debits and credits the Treasurer for all 
receipts and payments of money. Some Companies employ a Treasurer, who, under 
instructions from the board, tak«s charge of all the revenues of the Company, and pays 
out all their expenditures, reporting the same to the board. For some Companies the 
banker is their only Treasurer. . . 

3. The first entry in March, and the second and third entries on the 31st, are original. 

4. When the Journal is posted, compare and check the Journal and Ledger, then take 
off a trial sheet and prepare to close the Ledger, and make a dividend. For this purpose 
open the six accounts on page 6 of the Ledger. 

5 The four entries on Journal, page 3, we obtain from the Ledger; but the same 
accounts may be closed on the face of the Ledger without a Journal entry, as we do in 
Mercantile Books. I have followed the practice of Rail Road Accountants. 

6. You will see that the Operating Account finally closes into Profit & Loss with a net 
gain of $44,632. Of this the Directors divide 5% on the paid-up Capital of §300,000, 
and place $20,000 to the credit of the Shareholders on the Stock Ledger. See Journal, p. 4. 
The surplus is carried to the credit of Surplus Capital, or Contingent Fund, as it is some- 
times called. 

7. The Dividend must be carried to the credit of the Dividend Account j and as the 
stockholders draw their Dividends, that account is Dr., and Cash, or the Bank Account, is 

credited. , n j o 

8. The entries for closing the Ledger and making the Dividend are all made on pages S 
and 4 of the Journal, from which they are posted to the Stock and General Ledger. See 
posting to Stock Ledger from first entry in the Journal. 



881 



330 




.1 ■ 



1 
1 
1 
1 
1 
1 
1 

2 
2 
2 
2 
2 



2 
2 
2 
2 
2 
3 
3 
3 
3 
3 
3 



PITTSBUEGH, January 2, 1867. 



Treasurer, Dr. 

To Capital Stock, for 1st Instalment paid by Shareholders 
R. Fulton 1200 Shares of 8100 ea. Cash 10 % 812000 



100000 



T. Graham 500 do 

D. Martin 800 do 

A.T.HowdenlOOO do 

J. Carver 900 do 

A. Bowman 1000 do 

W. M. Lyon 1500 do 

Gr.R.Dunean 1500 do 

W. H. Duff 600 do 

R. Banks 1000 do 

Shares, 10000 



100 // 
100 // 
100 // 
100 // 
100 // 
100 // 
100 // 
100 // 
100 // 



do 
do 
do 
do 
do 
do 
do 
do 
do 



5000 

8000 
10000 

9000 
10000 
15000 
15000 

6000 
10000 



First Instalment, 8100000 



1 Cash, Dr. 

1 To Treasurer, for Check 



15. 



31. 



1 Sundries, Dr. To Bonds Payable 

1 Treasurer, for n/p, received of W. Dumas & Co. for sales 

1 Discount, for 10% Discount on above sales 



Sundries, Dr. To Cash 

Paid for Construction & Equipment this month 
Depots 

Road Building 
Lands 
Surveying 
Grading 
Bridging 

Tunneling # 

Locomotives 
Cars 
Fencing 
Construction Incidentals 



Treasurer, Dr. 

To Capital Stock, for 
R. Fulton 1200 
T. Graham 500 
D. Martin 800 
A.T.Howden 1000 
J. Carver 900 
R. Banks 1000 
A. Bowman 1000 
W. M. Lyon 1500 
G.R.Duncan 150t) 
W. H. Duff 600 

Shares, 10000 



Feb. 1. 



170000 



540000 
60000 



2d Instalment paid by Shareholders 
Shares of 8100 ea. Cash 20% 824000 ii 



86070 

20100 

6090 

1100 

8100 

14800 

8200 

27600 

28500 

3310 

1200 



200000 



do 
do 
do 
do 
do 
do 
do 
do 
do 



100 // 
100 // 
100 // 
100 // 
100 /r 
100 // 
100 // 
100 // 
100 V 



do 
do 
do 
do 
do 
do 
do 
do 
do 



10000 i 
16000 I 
20000 I 
18000 I 
20000 : 
20000 I 
30000 i 
30000 
12000 



Second Instalment, 8200000 



100000 



170000 



600000 



155070 



200000 



332 



V 



February 15, 1867. 



Cash, Dr. 

To Treasurer, for Check 



120000 



28. 



2 
2 
2 
2 
2 
3 
3 
8 
3 
3 
3 



Sundries, Dr. To Cash 

Paid for Construction & Equipment this month 
Depots 
Road Building 

Lands 

« 

Surveying 

Grading 

Bridging 

Tunneling 

Locomotives 

Cars 

Fencing 

Construction Incidentals 



120000 



122700 



3 
2 



March 1. 



Sundries, Dr. To Bills Payable 

Road Building, for notes to E. Dudley & Co., at 6, 8, 9, 

12, and 18 months, for R. R. Iron 
Interest, for amount added in notes 



4 
4 
4 
5 
5 
5 
5 
5 
5 
5 



»1 
1 



4 
1 



3L 



31000 

18000 

1100 

900 

7500 

14800 

8200 

22200 

17500 

700 

800 



169080 



1 
4 
4 
4 



Sundries, Dr. to Cash 

Paid Operating Expenses this month 
Station 
Sliop 
Train 
Engines 
Cars 
Track 
Buildings 
Oil & Waste 
Fuel 
Operating Incidentals 



160000 
9080 



Cash, Dr. 

To Treasurer, for Check 



// 



Interest, Dr. 

To Cash, Pd. Int. for 6 mths. on 8600,000 Bonds, 
Ifo Exchange 



818,000 
180 



3100 
4305 
5280 
4200 
5100 
4400 
2160 
1105 
2880 
1230 



52400 



33760 



52400 



18180 



18180 



Treasurer, Dr. to Sundries 

To Freights, for Receipts for this month 
// Passages w " u ii 

II Mails n 11 w a 



78392 



40310 

34092 

3990 



333 



March 31, 1867. 



March 31, 1867. 



6 
2 
2 
2 
2 
2 
3 
3 
3 
3 
3 
3 
4 
1 



6 
4 
4 
4 
5 
5 
5 
5 
5 
5 
5 



Construction & Equipment, Dr. To Sundries 

To Depots To close acc't 

Road Building do 

Lands do 

Surveying do 

Grading do 

Bridging do 

Tunneling do 

Locomotives do 

Cars • do 

Fencing do 
Construction & Equipment Incidentals do 

Interest do 

Discount do 



Operating, Dr. To Sundries 
To Stations 

Shop 

Train 

Engines 

Cars 

Track 

Building 

Oil & Waste 

Fuel 

Operating Incidentals 



To close acc't 
do 
do 
do 
do 
do 
do 
do 
do 
do 



6 Sundries, Dr. To Operating 

4 Freights 

4 Passages 

4' Mails 



To close acc*t 
' do 
do ' 



6 Operating, Dr. 

6 To Profit & Loss, for gain 



525030 



33760 



40310 

34092 

3990 



67070 

198100 

7190 

2000 

15600 

29600 

16400 

49800 

46000 

4010 

2000 

27260 

60000 



3100 
4305 
5280 
4200 
5100 
4400 
2160 
1105 
2880 
1230 



78392 



44632 



44632 



6 



Profit & Loss, Dr. To Sundries 
To Dividend No. 1 

For 5% on $300000, payable in Cash to Shareholders 

R. Fulton 5 % on ^36000 paid in 



2 
2 
2 
2 
2 



T. Graham 
D. Martin 
A. T. Howden 
J. Carver 
R. Banks 
A. Bowman 
W. M. Lyon 
G. R. Duncan 
W. H. Duff 



15000 
24000 
30000 
27000 
30000 
30000 
45000 
45000 
18000 



// 



$1800 
750 
1200 
1500 
1350 
1500 
1500 
2250 
2250 
900 



44632 



15000 



S300000 Cash Div'nd, $15000 



To Capital Stock 

For $2 pr Sh'e on 10000 

T. Graham $2 on 

D. Martin 

R. Fulton 

A. T. Howden 

J. Carver 

R. Banks 

A. Bowman 

W. M. Lyon 

G. R. Duncan 

W. H. Duff 



Sh's to 


credit of Sharehold's 


500 Shares 


$1000 


800 


// 


1600 


1200 


// 


2400 


1000 


It 


2000 


900 


II 


1800 


1000 


II 


2000 


1000 


II 


2000 


1500 


II 


3000 


1500 


It 


3000 


600 


n 


1200 



20000 



|! Shares 

6 To' Surplus Capital 

^ For amount of gain undivided 



10000 Stock Div'nd, 20000 



9632 



334 



335 



li 



w^;^ PETROLEUM BILL OF LADING. ^^^ 

OWNER'S RISKOF FIRE. 




H. H. HOUSTON, 

General Freight sigeni^ ^^itadetphia. 



a A. CABBENTEB, 

Freight Agent ^ ^titburgh . 



.^f^tvo^, ^9^ , y; 

Barrels, said to contain and marked 

to be transported to : Consignee, at 

at Cents (freight for this and connecting Companiee 

or Agents) per one hundred pounds, subject to the following Conditions and Agreement: — 

FiT%L—"l\\& owner or consignee shall pay freight and charges thereon at specified rates at time of 
delivery, as the same from time to time arrives. 

iS^nd.— This merchandise may be carried in Box-Cars, Covered Skeleton-Cars, or on open Flat- 
form-Cars ; if destined beyond the line of the Philadelphia & Erie, Northern Central, or Pennsylvania 
Rail Roads, it may be transported by water, in boats, barges or lighters, or it may be entrusted or 
delivered in the Cars of this Company, or otherwise, to any other Railroad, or Transportation Com- 
pany, or Agent ; and such Rail Road, or Transportation Company, or Agent so selected, shall be 
regarded exclusivelv as the Agent of the owner or consignee, and shall be entitled to the beneht of 
the Conditions and 'Provisions of this, and of such Bill of Lading as they may deliver therefor; and 
the Pennsylvania Rail Road Company, Lessee Philadelphia and Erie Railroad, shall not be, in any 
event, responsible for the negligence or non-performance of any such Company or Agent, nor shall 
such Company or Agent be liable for any loss or injury except upon its or their respective routes, and 
while such merchandise is in their respective custody. ... , , , , ^ ^t ^,^k «.-,^ 

Third.-Thvit the owner or consignee in consideratton'qf the extremelij hazardmis naXwreqf «^ mer- 
eJuindiae, which is not covered by any eara charge for transporlation, hereby assumes all risk from leakage, 
evaporation, and loss by fire, while in transit, or at Depots or in Stations, or on board boats, vessels or 
lighters, from any cause whatever, and all dangers and delays of Rail Road and Water Transportation 
between the place of shipment and final delivery ; and in any claim or demand, suit at law or eqwity. 
against this Company or Transportation Company or Agent, for loss or damage thereby, this Bill of 
Ladint' shall be deemed and taken as a release in full therefor. 

Fourth.— Whatever responsibility is assumed under this Bill of Lading shall begin when the mer- 
chandise is loaded into the cars of the Company at the above station, and cease when unloaded there- 
from, or entrusted or delivered as aforesaid, and which, it is agreed, shall constitute a delivery. 

Fifth.— The owner or consignee will have his or their agent or employees to receive and remove 
the said merchandise as the same from time to time arrives and is delivered as aforesaid ; but if not 
then removed, the same will remain at place of unloading, or be removed, at the option of the Com- 
pany, to such place of deposit as it may select, at the risk and cost of the owner or consignee. 

Sixth.— Said merchandise may be retained for all arrearages of freight and charges due this Com- 
pany on other goods by the same consignee or owner. v i j 

Seventh.— lHoT shall any agent hereunder be liable, by reason of any responsibility hereby assumed, 
for aiiy loss or damage to such merchandise, unless the claim therefor be presented in writing at the 
Office of the General Freight Agent of the Pennsylvania Rail Road Company in Philadelphia, above 
mentioned, within ten days after the time when the same has been or ought to have been delivered. 

Eighth.— In case of logs or damage to anv property herein mentioned, from such cause as would 
render this Company liable, it is expressly agreed that they shall have the benefit of any insurance 
that may have been or may be efiected upon, or on account of said property, and the owner, consignee 
and shipper severally agree that it shall be so inserted in the policy, and the measure of such loss or 
damage shall be the market price of such property at the time and place of shipment. 



cJ^i 



vaent. 



RAIL ROAD ACCOUNTS. 

STOCK LEDGER, 
PENNSYLVANIA RAIL ROAD COMPANY, 

JANUARY, 1867. 

1. This Ledger has an account opened in it for every shareholder. The rulings and head- 
ings explain themselves. No accounts are kept in this Ledger but those of the shareholders, 
and in business it must have an index in the usual form. When a shareholder transfers the 
whole or only part of his stock (a thing that occurs daily), the Secretary makes an original 
entry on the Transfer book, from whence it is posted to this. See Transfer Ledger from J. 
Carter to T. Graham $27520, and to R. Manly, $1280. While the Directors are preparing 
the dividend, they generally give notice, ten days before declaring it, that no stock will be 
transferred until after it is declared. The holders of the stock up to that day are entitled 
to the dividend unless otherwise agreed upon by the purchaser : but the purchaser buys the 
interest in the surplus capital with the stock. 

2. When you take a trial balance off your General Ledger before closing, and when 
making the dividend, you must also take off from the Stock Ledger a list of the Shareholders, 
with the amount paid by each. The aggregate amount must agree with the credit of the 
Capital Stock in the General Ledger. In this instance it is $300000. 

3. This Ledger is never closed; but the individual accounts in it are closed when they 
transfer all the stock in J. Carver's account. 



W 



337 



336 



1 Dr. 



THOMAS 



p. (hares. 



B. 






D4VID 



I 



A. T. 



JAMES 



1867. 

Apr. 



w 



GRAHAM. 



Cr. 



1867. 
Jan. 
Feb. 
Mar. 

Apl. 



31 

6 



2 ' Treasurer 
1 



p. Shares. 7o 

1 500 iO 5000 
10000 



Profit and Loss 
J. Carver f. 



// 2 1000 
860 S2 27520 



PULTON. 



1867. 

Jan. 
Feb. 
Mar. 



Jl Profit and Loss 



Treasurer 

n 



1200 



112000 
20 24000 
2400 



MARTIN. 



1807. 

Jan. 
Feb. 



2 
1 



Treasurer 



Mar. 81 Profit and Loss 



800 10 8000 
n 20 .16000 
// 2 1600 



HOWDEN. 



1867. 
Jan. 
Feb. 



2 I 'Treasurer 
1 



Mar. $1 Profit and Loss 



1000 10 10000 
II 20 20000 
// 1 2 2000 



CARVER. 



2 R. Manly 
6 T.Graham 




' 1867. 

Jan. 
Feb. 
Mar. 



2 
1 

ai 



Treasurer 

// 
Profit and Loss 



900 10 9000 
// 20 18000 
// 2 1800 



28800 



338 



Dr. 



R. 



BANKS. 



Gr. 2 



p. 


Shares. 




1 


1867. 
Jan. 
Feb. 
Mar. 


2 

1 
31 



Treasurer 



p. Shares. %\\ \ 

1 (1000 10 1 10000 

' II 20 20000 

4 w 2 2000 



BOWMAN. 






WM. M. 



GEO. R. 



WM. H. 



iser. I II 

Jan. 2 Treasurer 

Feb. 1 '/ 

Mar. 81 < Profit & Loss 



1000 10 10000 
// 20 20000 
2 2000 



// 



I 



LYON. 



1807. 

Jan. 2 Treasurer 

Feb. 1 

Mar. 31 Profit & Loss 



1 1500 10 15000 

II 20 30000 

4 » ,2 3000 



1 1 



DUNCAN. 



1867. ' 11 

Jan. ' 2 Treasurer 

Feb. 1 // 

Mar. 31 Profit & Loss 



1 ! fi 
1 150010 15000 
// 20 30000 
4 II 2 3000 



DUPR 



il 






ROBERT 



1867. 
Jan. 
Feb. 
Mar. $1 



2 
,1 



Treasurer 

// 
Profit & Loss 



1 I 600 10 II 6000 1 
// 20 12000' 
1200 



MANLT. 



1867. 
Apr. 



^39" 



J. Carver 



f 1 40 32 12S0 






H 

> 

H 



1 

I 

o 

Q 
«! 
O 
P3 



M 

\ 

OQ 

izi 

n 



I 

o 

1 

o 



01 



I 

o 






i3 
O 

a 

















o 


o 


o 


o 


o 


o 


o 


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o 


o 


o 


o 


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o 


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(M 


OS 


CX) 


t- 


i tH 


T-H 


1—1 


(M 




T— 1 





o 
o 



o 

04 



o o 
o ' o 

(M O 









- -- lO lO »0 lO »0 lO 



iC aO ^ O 



§P O O 

CO O O 

9*3 O O 

^ p. o o 

CO CO 



o o 
o o 
o o 



o 
o 
o 

00 



o 

o 
o 

CO 40 
CO 



o o 
o o 
o o 

o 

CO 



o 

o 
o 

JO 



o 
o 

o 



' o 
o 
o 
o 

, o 

I CO 

I 



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00 






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8 

m 

OD 



bo 

p 

Pu 



•o 
•3 



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p 

OD rj 

P ^ 

e3 O 



a> 

> 



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p'^ 

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p 






p 



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o 



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p 
o 

1-^ 



;h 

e3 




340 






RAIL ROAD ACCOUNTS. 



GENERAL LEDGER, 



PENNSYLVANIA RAIL ROAD. 



1. This book and the Stock Ledger are generally opened at once, as all entries relating 
to the shareholders have to be posted into that Ledger, and this one also. See the posting 

to both, January 2 

2. This Ledger, in business, must have an Index, but it need not be written here. The 
Bonds Payable account is the same as the Bills Payable account, and may be posted to that 
account, but it is better to follow the established custom. 

3. All the accounts which you closed into Construction & Equipment account repre:ieiit 
property, and the debit side of that account stands in the debit side of the Balance accouiit 
as assets of the company. 

4. Operating accounts are of the same nature as Profit & Loss, into which they finally 
close. Dividend and Surplus Capital are both accounts representing liabilities, and are 
entered in the credit of the Balance account. 

5. All the accounts that close into Construction & Equipment and Operating account 
remain closed, and the unoccupied space below them may be used for a new account withuut 
a new heading. 

6. By comparing these Books before writing, the student who is well versed in Double 
Entry Book-keeping will have no trouble in understanding them. 

7. Surplus Capital is a reserve fund to enable the directors to make uniform dividends 
when business is unfavorable. 



w 



341 



<4 ■! 

lit,: 



1 1 



1 1 



Dr. 



CAPITAL 



STOCK 



Cr. 



1867. 

Jan. 
Feb 
Mar. 1 31 



2 Treasurer 



Profit & Loss 



1 
4 



lOOOOQ 

200000 

2000(J 



TREASURER'S 



ACCOUNT. 



1867. 

Jan. ; 3 Capital Stock 

t 31 Bonds- Payable 

Feb. I Capital Stock 

Mar. ' 3:^ Sundries 



Balance 



100000 

540000 

200000 

7839^ 




1867. ' ' 

Jan. 1^ Cash 
Feb. 151 // 
Mar. 31 // 

Balance 



1 
2 

6 



CASH 



ACCOUNT. 



18«7. • I 

Jan. 15 Treasurer 
Feb. la If 
Mar. 31 



// 



1 170000 

2 120000 
52400 



Balance 



342400 



12690 



1807. 

Jan. 31 Sundries 
Feb. 28 // 
Mar. 31 // 

Interest 
Balance 



1 
2 



BONDS 



PAYABLE. 



I I 



DISCOUNT 



1M7. 

Jan. 31 Sundries 



ACCOUNT. 



1867. 



Jan. 31 Bonds Payable 



6000a 



1807. 



Mar. ! 31 Constr. & Equip. 



342 



170000 

1200001 

52400 
57.')9J>2 

918392 



155070 

122700 

33760 

18180 

12690 

342400 



600000 



60000 



Dr. 



DEPOTS. 



Gb. 2 




1 

2 


36070 
31000 

67070 


1867. 

Mar. 

i 


31 


1 





31 Constr. & Equip 




ROAD 



BUILDING. 



1867. I 

Jan. 31 Cash 

Feb. 

Mar. 



28 // 
1 Bills Payable 



I 
2 



20100 

18000 

160000 

198100 



1867. 



Mar. 1 31 Constr. & Equip. 3 198100 




19810 



<1 



LANDS 



ACCOUN"' 



1867. 

Jan. 
Feb. 


31 

28 


Cash 

// 

* 












SURVEYING 



ACCOUNT. 



1867. 

Jan. 

Feb. 



31 Cash 
28 // 



1 
2 



1100 
900 



2000 



1807. 



Mar. 31 Constr. & Equip. 3 



2000 
2000 



I 



GRADING 



ACCOUNT. 



1867. 

Jan. 
Feb. 


31 

28 


Cash 
// 


1 

2, 


' 8100 
7500 

15600 

1 


1867. 

Mar. 


31 


Constr. & 




- 















15600 
15600 



343 



« 1 



Db. 



BBIDGING. 



Cb. 



1867. ' ! 

Jan. 31 Cash 
Feb. 29 // 



1 
2 



14800 
14800 



1887. 

Mar. 



311 Constr. & Equip. 



3 2960d 
29600| 



TUNNELING 



ACCOUNT. 



1887. 






Jan. 


31 Cash 


Feb. 


28 


// 




L 



1 

2 



8200 
8200 



16400 



186T. 

Mar. 



31 Constr. & Equip. 



16400 



164001 



LOCOMOTIVE 



ACCOUNT. 



1887. 

Jan. 
Feb. 



31 Cash 
28 // 



1 
2 



. 27600 
22200 

"49800 



1887. 



Mar. 31 Constr. & Equip. 



4980« 



49800 



CABS 



ACCOUNT. 



1867. 

Jan. , 31 Cash 
Feb. I 28 II 



1 
2 



285001 
17500 

46000 



1887. 

Mar. 



31 Constr. & Equip. 



46000 



46000 



FENCING 



ACCOUNT. 



1867. 

Jan. 31 Cash 
Feb. 28 H 



1 
2 



3310 
700| 

4T)i0 



1867. 



Mar. 31 Constr. & Equip. 3 




, CONSTRUCTION 



INCIDENTALS. 



1887. 

Jan. 



31 Cash 



Feb. , 28 // 



Mar. 31 Constr. & Equip. 3 




2000 
2000 



BILLS 



PAYABLE. 



1867. 

Mar. 1 Sundries 



344 



169080 



Dr. 



INTEREST. 



Cb. 4 



1867. ' 

Mar. 1 Bills Payable 
31 Cash 



9080 
18180 



'27260 



1867. 

Mar. 



31 



Constr. & Equip. \ 3 



27260 
27260 



FREIGHT 



1867. 

Mar, 31 Operating 



40310 



ACCOUNT. 



1867. 

Mar. 31 Treasurer 



40310 



PASSAGE 



1867. 

Mar. 



31 Op 



erating 



34092 



ACCOUNT. 



1867. 

Mar. 31 Treasurer 



34092 



U. S. MAIL 



SERVICE. 




STATION 



SERVICE. 




3100 



SHOP 



1867. I ! 

Mar. 31 Cash 



SERVICE. 




|l 1867. ' I 

4305 Mar. 31 Operating 



4305 



TRAIN 



SERVICE. 



1867, 

Mar 




345 



5280 



9 Db. 



ENGINE 



SERVICE. 



ism. 
Mar. 31 Cash 



2 



4200 




CAB 



REPAIRS. 



iser. 
Mar. 31 Gash 



T]EtACE 



REPAIRS. 



Mar. 31 Cash 



2 


• 4400 




' 1867. 

Mar. 

1 


1 
81 





Operating 



BXnLDING 



REPAIRS. 



1807. ' < 
Mar. 31 Cash 



2|| 



2160 



18«7. ' ' 

Mar. 31, Operating 



OIL 



& 



WASTE. 




1867. ' 

Mar. 31 Operating 



FUEL 



ACCOUNT. 



1867. 

Mar. 31 Cash 



2 



288rt 



1867. 

Mar. 31 Operating 



OPERATING 



INCIDENTALS. 




1867. 

Mar. 31! Operating 



3 



Cr. 





4400 



2160 




2880 



1230 



Dr. 



PROFIT 



& 



LOSS. 




44632 



1867. 

Mar. 31 



Operating 



Cb. 



44632 



CONSTRUCTION 



& 



EQUIPMENT. 



1867. 

Mar. 81 Sundries 



3! 525030 



BALANCE 



ACCOUNT. 



1867. 

Mar. 31 Treasurer 
Cash 



f 1 i 575992 
1; 12690 
Constr. & Equip. 6 525030 



1113712 



1867. 

Mar. 31 Capital f 1 

, Bonds Payable 
I Bills Payable 
I Dividend No. 1 
I Surplus Capital 



820000 

600000 

3 169080 

6, 15000 

9632 

ill3712 



OPERATING 



ACCOUNT. 



1867. 

Mar. 31 



Sundries 
Profit & Loss 




1867. 

Mar 31 Sundries 



I ( 



78392 

78392 



DIVIDEND 



No. 1. 



1867. ' 

Mar. 31 Profit & Loss 



15000 



SURPLUS 



CAPITAL. 



9632 




QUESTIONS FOR EXAMINATION ON RAIL ROAD ACCOUNTS. 

I. Where are the totals of the Construction & Equipment Day Book carried to? (N. 

2 Whatare the entries of this book made from? (N. 5, p. 315.) ju,„„„ „ 

3. Where are the total amounts of the money columns of the Operatmg Expenditures re- 

presented ? (N. 2, p. 323.) • j ^ 9 /isi o « Q9Q ^ 

4. Where are the aggregates of the Operating Receipts carried to / C^N- ^> P- ^^^O 

5. What entries originate upon the Journal? (N. 1, p. 331.) 

6. Who is supposed to keep the books of the company/ (iN. A P- ^^^ „oi >, 
7 How does the Secretary keep his account with the Treasurer? (N- ^, P- ^^^■) 

8. What is done after the contents of the Journal are posted into the General Ledger? 

9 What'acco^unts are to be opened preparatory to closing the Ledger ? (N. 4, p. 331.) 
10. Where are the closing entries of the Ledger made ? (IN. 5, p. 661.) 

II. How is the total gain divided? (N. 6, p. 331.) 

12 What accounts are kept in the Stock Ledger r {IS. 1,1^. 66i.) 

13 How are transfers of stock made? (N. 1, P- ^^'^•) 

14. When is the transfer of stock prohibited? (N. 1. p. ^5*57.) , ^;\^a ^^ tho 

15. If a sale of stock is made while the transfer booK is closed, who is entitled to the 

16. Wh^a^m^f be do^e when^you take a Trial Balance off the General Ledger? (N. 2, 

17. What^must the aggregate amount of the credits of the Stock Ledger agree with ? 

18. When are the accounts in this Ledger closed? (N. 3, p. 337.) 

19. When is the General Ledger opened? (N. 1, p. 341.) 1.1 »? /M 9 r. ^±^ ^ 
20 Is there any difference between "Bonds Payable- and" Bills Payabe ? (N. 2 p. 341 ) 

21. What do the accounts closing into "Construction & Equipment" represent? (N. 3, 

22. What is the nature of Operating Accounts? (N. 4, p. 341.) 

23. Into what account do they close? (N- 4, p. 341.) fxr a r. qil ^ 

24. Are "Dividend" and "Surplus Capital" effects, or liabilities? (N. 4, p.^41.) 

25 What is done with the accounts closed into Construction & Equipment after the books 

are closed? (N. 5, p. 341.) 
26. What is " Surplus Capital" ? (N. 7, p. 341.) 



DUFF'S BOOK-KEEPING. 

PRIVATE BANKER'S ACCOUNTS. 



II 



1867. 



349 



348 



PEELIMINARY EEMARKS. 

Although the principles of Bank Accounts have been ftdly illustrated in our set of 
National Bank Accounts, the business of the Private Bauker differs in so many particulars 
from that of the Joint Stock Company that we think the following set of books, expressly 
adapted to this particular business, will prove useful in perfecting the business man's edu- 
cation. 



350 



CASH BOOK, 



PRIVATE BANKER'S ACCOUNTS. 



NOVEMBER, 1867. 



1. Bankers generally make this book perform the oflGice of Cash Book and Journal. The 
arginal pages indicate the direct posts to the General Ledger, which is made up from this 

book. 

2. The aggregate monthly receipts and payments are posted from the' right-hand money 

colli nins. 



o51 



111 



1 Db. 



O^SH 



1867. 

Nov. 



8 



10 
16 

23 



30 



2 : To P. Duff 

II Wm. Hav 

// W.Wood 

// Depositors 

// Discount 

// Depositors 

// Discount 

// Depositors 

// Discount 

// Depositors 

'/ Discount 

// Depositors 
// do. 

// Discount 

'/ Depositors 

'/ Discount 

'/ Bills Keceivable 

II Depositors 

// Bills Receivable 

II Discount 



Eec'd in full for his capital 



// 
// 
// 
u 

» 

» 

» 
If 
M 
It 

» 



II 



II 
II 



II 
II 



II 
If 



II 
II 



II 
II 



Dec. 



4 

7 

ii4 



21 
28 



29 
30 

31 



To Discount 
Depositors 
Discount 
Depositors 
Bills Receivable 
do. do. 

Discount 
Depositors 
Discount 
Depositors 
Discount 
Bills Receivable 
Discount 
Depositors 
Discount 
Depositors 
Discount 

Duff Brothers & Co. 
Thomas Thompson & 
Bills Receivable 
do. do. 



Balance 



1 
1 
1 
P. 1 2 

1 3 

1 

1 

1 

1 

1 

1 

1 

1 

1 

1 

1 



per Deposit Register 
Discount Book 
Deposit Register 
Discount Book 
Deposit Register 
Discount Book 
Deposit Register 
Discount Book 
Deposit Register 

do. do. 

Discount Book 
Deposit Register 
Discount Book 
for Discount No. 3 
per Deposit Register 
for Discount No. 2 
per Discount Book 



Balance 

Rec'd per Discount Book 2 

// Deposit Register 2 

«r Discount Book 2 

II Deposit Register 2 

II for Discount No. 4 • 

II II No. 5 

// per Discount Book 2 

II Deposit Register 2 

If Discount Book 2 

M Deposit Register 2 

n Discount Book 2 

// for Discounts No. 8, 9, and 10 

// per Discount Book 2 

u Deposit Register 2 

w Discount Book 2 

n Deposit Register 2 

// Discount Book 2 

// for draft on them 

Co. // " II do. 

a Discount No. 7 

» U II 1 



2 
3 
2 
3 
2 
3 
2 
2 
3 
2 
3 
2 
2 
2 



3 
2 
3 
2 
2 
2 

|3 
12 
!3 
2 
3 
2 
3 
2 
3 
2 
3 
3 
3 
2 
2 






20000 

10000 ! 

10000 ; 

2200 i 
158 02 
1900 

69 
2200! 

25 1 
3260! 

39f0 
3049' 
5985 

62 47 
2900 
154 57 
5600 
6630 
4000 
110 1 



78343 



)6 



78343 66 



26533 66 

1260 ; 

8815' 
75 50 

9960 

2800 

4200 

2618 ^0 

2700 I 
80 80 

1410 
143 $4 

3600 i 
306 I 
890 i 
200 I 
13910 I 
113 84 

1000 

6000 

3800 

5000 



68883 



95416 H 



6737 74 



iLCCOUNT. 



Cb. 1 



)8 



1867. 


















Nov. 


2 


By Depositors 
// Bills Receivable 


Pd. per Check Register 
// for Notes 1, 2, 3, and 4 


1 


2 

2 


1000 
17400 










// Discount 


II per Discount Book 




3 


20 








7 


// Depositors 


n Check Register 




2 


675 










// Discount 


// Discount Book 




3 


37 








8 


// Depositors 


a Check Register 




2 


1600 










// Discount 


n Discount Book 


•«• 


3 


12 








9 


II Depositors 

// Bills Receivable 


// Check Register 
II for Note 5 




2 
2 


2400 
4200 










II Discount 


'/ per Discount Book 




3 


15 








10 


// Depositors 


// Check Register 


1 2 


1100 








11 


// Bills Receivable 


// for Note 6 • 


2i 


1600 








16 


II Depositors 


// per Check Register 




2i 


i 1300 










// Discount 


// Discount Book 




3* 


75 








23 


II Depositors 

II Bills Receivable 


n Check Register 

// for Notes 7, 8, 9, and 10 




2 
2 


7920 
7400 










II Discount 


'/ per Discount Book 




3 


105 








30 


// Depositors 


II Check Register 




2 


4920 










II Discount 


n Discount Book 




3 


31 




51810 




4 




Balance carried down 
Pd. per Check Register 


2 


2 


26533 


66 
66 






78343 




Dec. 


By Depositors 


560 








// Discount 


// Discount Book 


1 


3 


15 








7 


II Depositors 


1/ Check Register 


2 


2 


360 










II Discount 


II Discount Book 


2 


3 


24 










// Bills Receivable 


// for Note 11 




2 


3800 








14 


// Depositors 

II Bills Receivable 


II per Check Register 

II for Notes 12, 13, and 14 


2 


2 
2 


430 
4500 








21 


II Depositors 


'/ per Check Register 


2 


2 


2850 










// Discount 


II Discount Book 


2 


3 


56 










// Bills Receivable 


// for Notes 15 and 16 




2 


5600 








28 


II Depositors 


'/ per Check Register 


2 


2 


3640 






• 




II Discount 

//" Bills Receivable 

II Duff Brothers & Co. 


n Discount Book 

// for Notes 17, 18, 19, and 20 

II Retaining n/p of Note No. 10 


2 


3 
2 
3 


12 

12600 

• 1188 








29 


// Bills Receivable 


// for Notes 21 and 22 




2 


24000 








30 


II do. do. 
II R. P. Duff 


II II II 23, 24, and 25 

II Retaining n/p of Note No. 19 




2 
4 


15000 
130 








31 


II Depositors 


// per Check Register 


2 


2 


6700 










II Discount 


II Discount Book 


2 


3 


50 










// Bills Receivable 


// forNotesNo.26,27,28,29,30,«&31 


2 


1254 










II T. F. Shephard 


II Retaining n/p of Note No. 10 




4 


960 










II T. Thompson & Co. 


II do. " '/ II 1 
Balance carried down 

t4 




3 


4950 
6737 


74 


88679 


M 


95416 













X 



353 



PRIVATE BA-ISTKER'S 
PITTSBURGH, Nov. 2, 1867. 



1867. 

Nov. 



Wilson, Childs & Co 
R. S. Carson 
W. J. Murphy 
Wm. Payne 



C. B. 1 



Nov. 



7 ! Wm. Payne 
J. R. Weldin 
R. Banks 
Jas. Wood 



C.B.I 



Nov. I 8,i Chas. Page 
' ' W. Stoner 
R. S. Carson 
R. Banks 



C.B.I 



Nov. 9 Wm. Payne 
R. S. Carson 
I R. Banks 
J. Pillow 



Note 2 
8 
6 



C. B. 1 



Nov. 10 



J. R. Weldin 
W. J. Murphy 
Robt. Knox 
Jas. Watt 
Greo. Draper 



Note 5 
4 ' 



C.B.I 



Nov. 16 Jas. Wood 
W. Hay 

John Hatch 
White & Edwards 



Note 7 



C. B. 1 



Nov. 23 Chas. Page 

Jones & Hatch 
I ! Rich & Gray 
I I Hay & Wood 
Wm. Payne 
Certificate of Deposit 



No. 1 



C.B.I 



354 




2 

2 
2 
1 
2 


600 


1900 

( 

1 


700 

240 

260 

1000 


1 
1 
2 

3 


2200 


300 

260 

1000 

1700 



3260 



2 
1 
3 
3 
3 



600 
500 
749 
450 
750 

3049 



2 
3 
4 
4 



2 
4 
4 
5 
1 
5 



2000 

1475 

760 

1750 

5985 



450 
750 
460 
500 
40 
700 

2900 



DEPOSIT REQISTER. 

PITTSBURGH, Nov. 30, 1867. 



1867. 

Nov. 



Dec. 



Dec. 



!l 



30 



Dec. 



Dec. 



Dec. 



Dec. 



14 



Chas. Page 
Wm. Hay 
R. S. Carson 
Wm. Stoner 
Hay & Wood 
Certificate of Deposit 









Wilson, Childs & Co. 
James Pillow 
Hay & Wood 



James Watt 
R. Knox 
Jones & Hatch 
Certificate of Deposit 



21 , Geo. Draper 
Wm. Stoner 



28 Jno. Hatch 

White & Edwards 
Rich & Gray 
Hay & Wood 



30 Jones & Hatch 

W. Payne 

R. Martin 



31 Wm. Hay 
R. Banks 
H. P. Ford & Co. 
Wilson, Childs & Co. 
W. Stoner 
W. Payne 



Notes 



No. 2 
// 3 
// 4 



C. B. 1 



Note 1 
12 



C. B. 1 



Note 15 
14 



No. 5 



C.B.I 



Note 11 



C.B.I 



Note 16 
17 
18 
20 

C.B.I 

Note 19 

C.B.I 

Note 10 



C.B.I 



1. In this book enter all receipts of money received on deposit account and for 
Certificates of Deposit. The daily amounts are carried to the Cash Book, and the 
particulars are posted into the Depositors' Ledger. 

355 ' "™ 



2 , 


470 


3 


1000 


1 


1400 


2 


560 


5 


700 


5 ' 


1000 


5 


600 


5 


900 



1 

3 
5 



3 

2 



6630 

400 

7800 

615 

8815 



3 3000 

3 , 3960 

4 i 1000 

5 i' 2000 

9960 



2600 
100 

2700 



4 


200 


4 


150 , 


4 


500 ' 


5 


560 




1410 



4 130 
1 360 

5 400 

890 



3 


960 


2 


550 


5 


600 


1 


3200 


2 


4800 


1 


3800 



13910 



1867. 

Nov. 



PITTSBURGH, Nov. 2, 1867. 



W. Payne 

Wilson, Childs & Co. 

W. J. Murphy 



R. S. Carson 
Robt. Banks 
Jas. Wood 



J. R. Weldin 
C. Page 
W. Payne 



R. S. Carson 
R. Banks 
W. Stoner 
James Pillow 



IC 



Wm. Payne 
W. J. Murphy 
Robt. Knox 



U 



Jas. Watt 
Geo. Draper 
Jas. Wood 
Wm. Hay 



2S 



Jones & Hatch 
White & Edwards 
John Hatch 
Rich & Gray 
Hay & Wood 
C. Page 



3d John Hatch 

White & Edwards 
Wm. Payne 
Wilson, Childs & Co. 
R S. Carson 



C. B. 1 



C. B. 1 



C. B. 1 



Note 6. Collection Register 



C. B. 1 



C. B. 1 



C. B. 1 

Certificate of Deposit No. 1 

Note 3 Discounted 
C.B.I 



Certificate of Deposit No. 2 
¥ «r w 3 



C. B. 1 



1. This book records the payment of all Checks and Certificates of Deposit. 
Transfer the amounts daily to the Cash Book, and post the particulars to the De- 
posit Ledger. 



Job 



2 
2 



1 
2 
2 
3 



3 
3 
2 
3 



4 
4 
4 
4 
5 
2 



4 
4 
1 
1 



400 
400 
200 



1000 



375 
200 
100 



675 



700 
600 
300 



1600 



1000 
600 
200 
600 



2400 



200 
700 
200 



1100 



400 
200 
500 
200 



1300 



400 
800 
700 
20 
400 
5600 



7920 



840 
1000 

600 
1000 
1480 



4920 



OHEOK REGISTER. 
PITTSBURGH, Dec. 4, 1867. 



1867. 

Dec. 



-14 



Jl 



;58 



;{i 



Hay & Wood 
R. S. Carson 



C. B. 1 



Jones & Hatch 
Wm. Payne 



C. B. 1 



R. Martin 
Rich & Gray 



C. B. 1 



Wm. Hay 

Wilson, Childs & Co. 

R. Knox 

Certificate of Deposit No. 5 



C.B.I 



R. Knox 
Jones & Hatch 
White & Edwards 
Certificate of Deposit No. 3 



C.B.I 



Wm. Stoner 
Wilson, Childs & Co. 

do. do. 
Certificate of Deposit No. 1 



C. B. 1 



357 



5 
1 



4 
1 



5 
4 



3 
1 
3 
5 



3 
4 
4 
5 



2 
1 
1 
5 



400 
160 

560 



200 
160 

360 



300 

130 

430 



500 

200 

150 

2000 

2850 



400 

240 

2400 

600 

3640 



5000 
700 
300 

700 

6700 



1 1 



i 



PRIVATE Bi^NKER'S 
NOTES & BILLS 



When Rec'd. 



Discounted for. 



1887. i 

NoY. ; 2 j Jno. Scott 
K. Banks 
S. White 
I S. Smith 
9' T. Rhodes 
11 Good & Little 
23 Moss & Howard 
Rhodes & Verner 
G. R. White 
W. Payne 
Dec. 7 J. Taylor 
14 S. Barrett 
I I D. A. Carston 
Jno. Hawkins 
21 Hay & Wood 
J. Watt 

28 i J. Pillow 
R. Banks 
S. Simpson 
W. Wells 

29 R. Smith 
E. Waltby 

30 Thos. Anderson 
D. Fox 
W. Langdon 

31 B. F. Swan 
J. M. Smith 
R. Root 
Jno. Black 
R. P. Murry 
J. Higgins 



Dbaweb. 



Simon Payne 
Thos. Gains 
Chas. Page 
W. Hay 
S. Barrett 
S. Wise 
R. Goodwill 
M. Thompson 
A. Mason 
C. Ralston 
Jno. Eastman 
W. Hare 
Simon Payne 
Hay & Wood 
Jas. May 
Rogers & Co. 
Ragan & Morse 
T. A. Craig 
M. Love 
C. Page 
J. Brown 
Adrian & Co. 
C. Rhea 
W. F. Smith 
W. Langdon 
L. C. Donnell 
G. W. Holmes 
J. Hoag 
S. Green 
L. Bradley 
J. Vinsonhaler 



On Whom Drawn. 



Ik whose Favor. 



Wm. Young 
J. S. Ward 



T. C. Duff 



E. Lynch 



Jno. Kerr 
Wm. Cook 
G. L. Ryder 



D. Hall 

A. D. Walker 



Jno. Jones 
S. Myers 
S. White 
Good & Bacon 
T. Rhodes 
J. S. Duncan 
Moss & Howard 
Rhodes & Vomer 
G. R. White 
S. Stevens 
E. D. Jones 
S. Barrett 

D. A. Carston 
Jno. Hawkins 
Hay & Wood 
J. Dally 

J. Pillow 
R. Banks 
S. Simpson 
W. Wells 
Henry Rigg 

E. Waltby 

C. Gipner 
J. C. Young 
Ourselves 

S. J. Grant 
R. B. Wilson 
M. Die 

D. White 
V. B. Smith 
H. S. Kerr 



1. Enter all discounted paper as abovo ; the Discounts in the Discount Book, the payments in the Cash Book, and the day 
of maturity in the Tickler. 

358 



BILL BOOK. 
DISCOUNTED. 



Where Payable. No. 



Date. 



j 


1 


1867. 


1 


Cnicago ' 


1 


Sept. 


25 


City 


2 




28 


// 


3 


Oct. 


21 


Philadelphia 


4 


Nov. 


7 


City 


5 


Sept. 


7 


// 


6 


July 


11 


It 


7!; 


18 


It 


8i 


June 


25 


II 


9 


Sept. 


26 


New York 


10 


Nov. 


18 



TniE. 



When Due. 



Amount. 



Memoranda. 



City 

» 

w 

It 

St. Louis 

City 

It ' 

u 

,» 

It 

Chicago 

City 

New Orleans 

City 

New York 

City 

II 

Cincinnati 

City 
St. Louis 



11 Aug. 1 
!12!iJuly 10 

13 'Sept. 

14 II 

15 Dec. 
16 



17 

18 
19 



1 

28 
1 

20 

15 
5 

20 



20 1 Oct. 15 

21 liDec. 5 



22 
2a 
24 

*25 ii 

26 Nov. 

27 Dec. 
28 



29 
30 
31 .Sept. 15 



20 
15 

20 

3 

1 

30 

' 3 

15 



3 months 
60 days 
30 // 
1 month 
3 months 
5 '/ 

5 // 

6 *i' 
90 days 
30 // 

6 months 

6 // 

5 // 

4 

3 

3 

90 days 

60 // 

3 months 

5 // 

60 days 
||90 // 

3 months 

90 days 

3 months 

90 days 

3 months 
1 1 60 days 

3 months 

3 

6 



1867. 

Dec. 
Nov. 

Dec. 



// 
If 
If 



1868 

Feb. 
Jan. 
Feb. 
Jan. 
Mar. 



Feb. 
Mar. 

Feb. 
Mar. 



28 5000 
30 4000 
23 5600 
10 2800 
4200 



14 



1600 



21 3800 



Feb. 
Mar. 



// 



// 



6001 
1800 
1200 

3800 
800 

3000 
700 

1600 



28 
28 
21 

4 
113 

4 
31 

4 

23 4000 

18 2000 

6 4000 

23 3000 

18 3600 

6 4000 

23 20000 

18 5000 

If 4000 

23 6000 



Paid Dec. 31 

// Nov. 30 

// II 23 

tf Dec. 14 
Protested Dec. 10, pd. Dec.l4 
n Dec. 14 
// Dec. 21, pd. Dec 31 
Paid Dec. 28 

If Dec. 28 

// Dec. 28 



4 
4 
3 
6 

18 
18 



225 
140 
170 
360 
125 
234 



359 



PRIVATE BANKER'S 
NOTES & BILLS 



Wheic KnrD. 


Collected for. 


Drawer. 


On Whom Drawn. 


Ix WHOSE Favor. 


1867. 

Nov. 


2 


Wilson, Childs& Co 


Jas. Moultrie 


H. Jones 


r 

S. Stinson 






W. Payne 


S. Girty 


J. Gray 


J. Shepler 






R. S. Carson 


J. S. Duncan 




R. S. Carson 






W. J. Murphy 


S. Stevens 




Thos. McCabe 






J. R. Weldin 


S. Crites 


F. Wallace 


J. R. Weldin 




3 


R. Banks 


R. Carson 




Thos. Smith 




7 


Jas. Woods 


S. R. Moultrie 




Jas. Woods 




10 


C. Page 


Jno. Easton 


C. JfcLoo'an 


R. Sanders 




15 


W. Stoner 


W. Roy 




J. Getty 




20 


W. Hay 


J. Dalton 


A. Martin 


R. Jones 




30 


Geo. Draper 


Ditto & Knox 




Geo. Draper 


Bee 


1 


Jas. Pillow 


Stein & Dawson 




Jas. Pillow 




4 


S. Barrett 


W. Hare 




S. Barrett 






R. Knox 


J. Moultrie 


Jno. Milton 


R. Good 






J. Watt 


S. Barrett 




F. Garrett 




21 


Jno. Hatch 


R. Knox 


• 


Jno. Hatch 






White & Edwards 


Jones & Langdon 




White & Edwards 






Rich & Gray 


S. Girty 




Rich & Gray 






Jones & Hatch 


Brady & "Stein 


S. Grant 


T. Fairbanks 






Hay & Wood 


R. Roy 




J. Goodall 




28 


Ross & Childs 


J. Riggs 




S. Lowry 




30 


R. Banks 


Thos. King 


F. Johnson 


R. Banks 


1. lliiB book 


records all paper received 1 


br collection. Record its d 


latnrity at the same time 


on the Tickler. When col- 



Serted, pass it to the credit of the owner on the Deposit Register. 



PRIVATE BANKER'S 
NOTES & BIH£ 



When. 


Remitted to. 


Place. 


Drawer. 


In whose Favor 


Nov. 


2 


S. Ripley 


Philadelphia 


S. Girty 


J. Shepler 






T. Thompson & Co. 


Chicago 


S. Crites 


J. R. Weldin 




13 


Duff Bros. & Co. 


New York 


Jno. Easton 


R. Sanders 




25 


R. P. Duff 


Cincinnati 


Jas. Moultrie 


S. Stinson 


Dec. 


1 


S. Ripley 


Philadelphia 


W. Hay 


Good & Bacon 




4 


Geo. McCallum 


St. Louis 


Jas. Moultrie 


R. Good 




15 


Duff Bros. & Co. 


New York 


C. Ralston 


S. Stevens 




20 


T. F. Shepard . 


New Orleans 


J. Dalton 


R. Jones 






R. P. Duff 


Cincinnati 


Brady & Stein 


T. Fairbanks 


186B. 




T. Thompson & Co. 


Chicago 


Simon Payne 


Jno. Jones 


Jan. 


25 


Duff Bros. & Co. 


New York 


Thos. King 


R. Banks 






do 


» 


L. C. Donnell 


S. J. Grant 


Feb. 


25 


T. Thompson & Co. 


Chicago 


Adrian & Co. 


E. Waltby 


Mar. 


1 


R. P. Duff 


Cincinnati 


Samuel Green 


D. White 




10 


T. F. Shepard 


New Orleans 


W. F. Smith 


J. C. Young 






G. McCallum 


St. Louis 


J. Vinsonhaler 


H. S. Kerr 




15 


do 


// 


Rogers & Co. 


J. Dally 



2. Ten or fifteen days before the matnrity of foreign paper, forward it to your agent, transferring it from the Tickler to this 
book. When he notifies you of its payment, debit him ; or, if he remits the proceeds, enter it to credit of the owner on 
Deposit Register. 

360 



OOLI.EOTION HEQISTER. 

RECEIVED FOR COLLECTION. 



Where Payable. 


No. 


Date. 


TUfE. 


When Dot. 

1 


Amount. 


Mexoransa. 




1867. 






1867. ! 




1 


Cincinnati 


1 


Oct. 


2 


60 days 


Dec. 


4. 


400 


Paid Dec. 7 


Philadelphia 


2 




5 


30 // 


Nov. 


7 


300 




Nov. 9 


City 


3 




6 


1 month 




9 


260 




9 


If 


4 


Aug. 


7 


3 months 




10 


500 




10 


Chicago 


5 


Sept. 


5 


2 // 




8 


600 




10 


City 


6 


July 


6 


4 // 




9 


1000 




9 


// 


7 


Sept. 


14 


60 days 




16 


2000 




16 


New York 


8 


Aug. 


20 


3 months 




23 


470 




30 


City 


9 




29 


90 days 


1 


30 


560 




Ret'd Protested Nov. 30 


New Orleans 


10 


July 


25 


5 months 


Dec. 


28 


980 




Paid Dec. 31, less 320 


City 


11 




18 


5 If i 




21 


2600 




21 


/; 


12 


Nov. 


4 


30 days j 


; 1868. 


7 


7800 




7 


«f 


13 


July 


10 


6 months 


Jan. 


13 


100 






St. Louis 


14 


Oct. 


12 


60 days 


1867. 

Dec. 


14 


4000 


1 


Paid Dec. 14, less $40 


City 


15 




11 


12 months 






3000 


'■ 


14 





16 


Feb. 


25 


110 B 




28 


200 




28 


n 


17 






!10 n 






150 




28 


It 


18 


Nov. 


25 


1 If 






500 




28 


Cincinnati 


19 


Sept 


26 


190 days 






140 




30, less $10 


City 


20 


Oct. 


26 i 60 days 


1868. 




560 




28 


u 


21 




30 |90 // 


Jan. 


31 


800 
3000 






New York 


22 




28 i3 months 






1 





FOREiaN" COLLEOTIOI?^ REOISTER. 

REMITTED FOR COLLECTION. 



Collected for. 


No. 


Date. 


Dm. 


Amount. 


Memoranda. 




1867. 




1867. 












W. Payne 


2 


Oct. 


5 


Nov. 


7 


300 




Received Nov. 9 


J. R. Weldin 


5 


Sept. 


5 




8 


600 




Rec'd 


10 


C. Page 


8 


Aug. 


20 




23 


470 




Rec'd 


30 


Wilson, Childs & Co. 


1 


Oct. 


2 


Dec. 


4 


400 




Rec'd Dec. 


7 


Ourselves 


4 


Nov. 


7 


1 


10 


.2800 




Rec'd 


14 


R. Knox 


14 


Oct. 


12 




14 


4000 




Rec'd 


14, less HO 


Ourselves 


10 


Nov. 


18 




21 


1200 




Rec'd 


28, less 812 


W. Hay 


10 


July 


25 




28 


980 




Rec'd 


31, less 820 


Jones & Hatch 


19 


Sept. 


26 






140 




Rec'd 


30, less 810 


Ourselves 


1 


1 


25 


1868. 




5000 


Rec'd 


31, less 850 


R. Banks 


22 


Oct. 


28 


Jan. 


31 


3000 








Ourselves 


26 


Nov. 


3 


Feb. 


4 


j 225 
20000 








do 


22 


Dec. 


20 


Mar. 


23 








do 


29 




3 




6 


360 








do 


24 




15 




18 


4000 








do 


31 


Sept. 


15 




18 


234 








do 


16 


Dec. 


20 




23 


4000 









861 



PRIVATE BANKER'S 



DISCOUNT BOOK. 



1867. ! 

Nov. 2!' Note 1 
u 2 
u 3 
// 



EECEIVED. 



4 
Exchange 






C.B.I 



Nov. 7 Exchange 



1 



C.B.I 



Nov. 8 Exchange 






C.B.I 



Nov. 9 Note 5 

Exchange 

C.B.I 



Nov. 16 



Note 6 
Exchange 
// 



C.B.I 



Nov. 23 Note 7 

II " ^ 

' I' // 9 

i I // 10 
• i Exchange 



u 



C.B.I 



Nov. 30 Exchange 



C.B.I 



DISCOUNTS. 



! 1867. 

46 67 i Nov. 
18 67 
19-60 
17 73 
45 
10 
125 

158 92 



28 

17 

8 

21 



69 



10 

7 
3 
5 

^1 



2170 

18 



Nov. 



Nov. ; 8 



Nov. I 9 



39 70 



747 
45 
10 



62 47 



16 47 
35 
10 
5 60 
56 50 
31 



Nov. 16 



PAID. 

Exchange 
// 

H 
IT 

C.B.I 



Exchange 



u 

H 
H 



C.B.I 



Exchange 



u 

n 



C.B.I 



Exchange 



u 



C.B.I 



Exchange 



C.B.I 



Nov. "23 Exchange 






C.B.I 



154 


57 


40 
17 
22 
31 


110 



Nov. 30 Exchange 



Dec. 



It 

K 
If 
If 



C.B.I 



Exchange 



C.B.I 



10 
3 
5 
2 



20 



25 
2 



50 



4 75 
125 
3 50 



37 



3 
4 
5 



12 



5 
10 



15 



45 
17 
•2 
11 



75 



25 
37 
22 
21 



105 



10 
3 



50 



1150 
4 75 
125 



31 



10 
2 
3 



15 



1. This is a record of all discounta receired and paid and all sums received and paid for exchanging money. The amounts 
are daily passed into the Cash Book. 

362 



1867. 

Dec. 



Dec. 



Dec. 



EECEIVED. 



I Exchange 



14 



C.B.I 



Dec. 21 



Note 11 
Exchange 



C.B.I 



Exchange 
Note 12 
Exchange 
Note 13 
Exchange 
Note 14 
Exchange 



// 



C. B. 1 



Dec. i 28 



Dec. 29 



Note 15 
// 16 

C.B.I 



Dec. 30 



Dec. 31 



Note 17 

' // 18 

// 19 

// 20 



C.B.I 



Note 21 
n 22 

C.B.I 



Note 23 
// 24 
n 25 

C.B.I 

Note 26 

27 

28 

29 

30 
Draft 1 
Note 31 
Draft 2 

C.B.I 



DISCOUNTS. 



625 
635 




1 1 

1867. 

Dec. 


7 


1260 


37 






37 



25 13 
13 



PAID. 

Exchange 






C.B.I 



75 50 



40 



525 

I ^ 
' 522 

i 26| 

504' 
I 5 60 

526 

505 60 



Dec. 21 Exchange 
II 



Dec. 28 



IP 
u 



C.B.I 



F. C. R., Note 10 
C.B.I 



2618 60 



1947 
6133 



80 80 



26 67 
26 67 
42 50 

48, 



143 84 



Dec. 31 F. C. R., Notel 

C. B. 1 



26 
280 

306 



65 
52! 

83 

200 



1131 
147 
17.6 

4 20 ! 

160 
10 

3 
90 



113 34 



363 



3 

T 
4' 
10 



24 


10 


3 


15 


^ 




56 




12 




50 



I 




364 



TICKLER, 

PRIVATE BANKER'S ACCOUNTS, 



NOVEMBER, 1867. 

1. In business there is generally a whole page of this book appropriated for each day of 
the month. > And some bankers keep one Tickler for discounted paper, and another for 
collections. But we think the following form will serve without any inconvenience for 

both classes of paper. 

2. As the notes are paid, they pass into the Cash Book ; or, if collections, to the Deposit 
Eegister. Protested notes, like No. 9, are returned to the owner, who must pay any ex- 
penses that are incurred. 



365 



s 



a 



a 




o 


• 


CO 


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DEPOSITOR'S LEDGER, 

PRIVATE BANKER'S ACCOUNTS. 



NOVEMBER, 1867. 



1. The ne\^ form which we gave of this Ledger in our set of National Bank accounb* 
will also be found convenient for the private banker's business. But we retain the old form 
in this set, leaving it for the accountant to choose for himself. 

2. There are no accounts kept in this Ledger but those of the depositors and certificates 
of deposit. It is composed wholly from the Deposit and Check Registers. The account* 
are never balanced except when the customer hands in his pass-book to be balanced. 

3. The aggregate balances of this Ledger must agree with the balance of the Depositor's 
account in the General Ledger. 



361) 



m 



868 



1 Dr. 



WILSON, 



CHILDS & CO. Or. 



1807. 

Nov. 
Dec. 



50 // 
21 I ff 

51 ^ 



Cash 



Balance 









1867. 




1 


400 




Nov. 


2 


1 


1000 




Dec. 


7 


2 


200 




31 


2 


700 








2 


300 










1400 




Dec. 


51 


4000 





Cash 
Note 1 
Cash 



Balance 



1 

2 
2 


1 

400 

400 

3200 


4000 


1400 







R S. 












CARSON. 








iser. 










18«7. 










Nov. 


7 


Cash 


1 


375 


Nov. 


2 Cash 


1 


600 






9 


Note 6 


1 


1000 




8 // 


1 


260 






50 


Cash 


1 


1480 




9 Note 3 


1 


260 




Dec. 


4 


u 


2 


160 






50 Cash 


2 


1400 





18€7. 

xVov. 
Dec. 



W. J. 



MURPHY. 



31 



Cash 
u 

Balance 









1867. 




1 


200 




Nov. 


2 


1 


700 




^0 




100 




Dec. 


51 


1000 





Cash 
Note 4 



Balance 



WILLIAM 



PAYNE. 



1867. 

Nov. 



Dee. 



2 

8 

to 

50 
7 
31 



Cash 



// 



Certif. ofDep. No.3 
Cash 
Balance 



400 
300 
200 
600 
160 
3840 



5500 



1867. 

Nov. 2 
7 
9 
23 

Dec. feo 
61 



Dec. 81 



Cash 

II 
Note 2 
Cash 

II 

11 



Balance 



1 


500 


1 


500 


1000 


100 



1 


700 


1 


300 


1 


300 


1 


40 


2 


360 


2 


3800 


5500 


3840 



370 



y 



Dr. 



«!• B. 



WELDIN. 



1867, 

Nov. I 8 
Dec. 31 



Cash 

Balance 



700 

500 



1200 



1867. 

Nov. 



7 
HO 



Dec. 81 



Cash 
Note 5 



Balance 



ROBERT 



BANES. 



1867. 

Nov. 
Dec. 



7 

9 

31 



Cash 
u 

Balance 



1 


200 




1867. 

Nov. 


7 


1 


600 






8 




2150 




Dec. 
Dec. 


9 
31 


2950 





Cash 

II 
Note 6 
Cash 



Balance 



JAMES 



WOOD. 



1867. 

Nov. 



7 
16 



Cash 
// 









1867. 




1 


100 




Nov. 


7 


1 


, 500 






16 



Cash 
Note 7 



CHARLES 



PAGE. 



1867. 

Nov. 



8 
23 



Dec. 



31 



Cash 
Note 3 



Balance 



600 
5600 



6200 



4580 



1867. 

Nov. 



Dec. 



8 Cash 
23 // 

30 Note 8 



31 



Balance 



WILLIAM 



STONER. 



1867. 

Nov. 
Dec. 



9 Cash 
3l' II 

31 Balance 









1 1887. 




1 


200 




!Nov. 


8 


2 


5000 




i 


30 




500 




Dec. 
i Dec. 


21 
31 

31 


5700 





Cash 



// 
// 



Balance 



371 



Cr. 



!l 
1 



600 
600 

I2W 



500 



1 
1 
1 
2 



400 
1000 I 
llOOO 

550 ! 



2950 



2150 



1 
1 



600 
12000 



1 


1 ' 

700 


1 


450 


2 


470 



4580 



6200 



1 

2 
2 
2 


1 

' 240 
560 
100 

4800 




5700 


500 







S Dr. 



JAMES 



PILLOW. 



Cr. 



1867. 

Nov. 
Dec. 



9 
31 



Cash 
Balance 



1 


600 

8900 


— 


1867. 

Nov. 
Dec. 

Dec. 


9 

7 

31 


9500 





Cash 
Note 12 



Balance 



ROBT. 



KNOX. 



1867. 

Nov. 
Dec. 



10 
21 

28 
31 



Cash 



n 



Balance 









1867. 




1 


200 




Nov. 


10 


2 


150 




Dec. 


14 


2 


400 










3959 




Dec. 


31 


4709 





Cash 
Note 14 



Balance 



JAMES 



WATT. 



1867. 

Nov. 
Dec. 



16 

31 



Cash 
Balance 



1 


400 
3050 


— 


18«7. 

Nov. 
Dec. 

Dec. 


10 
14 

31 

♦ 


3450 





Cash 
Note 15 



Balance 



GEORGE 



DRAPER. 



WILT.TAM 



HAY. 



16 



1867. 

Nov 

Dec. 21 

31 



Cash 

n 
Balance 









1867. 




1 


200 




Nov. 


16 


2 


500 




1 

1 


30 




2735 


-— 


Dec. 


31 


3435 








Dec. 

1 


31 



Cash 

// 
Note 10 



Balance 



372 



1 


1700 


2 


7800 




9500 




8900 



1 
2 


749 
3960 


4709 


3959 



1 
2 


450 
3000 


3450 
3050 



1867. 












1867. 










__^ 


Nov. 


16 


Cash 


1 


200 




Nov. 
Dec. 


10 
21 


Cash 
Note 11 


1 
2 


750 
2600 





1 
2 
2 


1475 

1000 

960 


3435 


2735 



Dr. 



JOHN 



1867. 

Nov. 



23 
30 



Certif. of Dep. No. 1 
Cash 



HATCH. 



700 
840 



1867. 

Nov. Il6 



Dec. 



28 



Cash 
Note 16 



Or. 4 



760 
200 



WHITE 



1867. 

Nov. 
Dec. 



23 

30 

28 



Dec. 



Cash 

Certif. of Dep. No. 2 

Cash 



31 



Balance 



%t 



EDWARDS. 









1867. 




1 


800 




Nov. 


16 


1 


1000 




Dec. 


28 


2 


2400 






31 


4200 


2300 



Cash 
Note 17 
Balance 




1867. 

Nov. 
Dec. 



23 

7 

28 
31 



Cash 



II 



JONES 



Balance 



400 

200 

240 

1040 



1880 



& 



HATCH. 



1867. 

Nov. 
Dec. 



Dec. 



23 
14 
30 



Cash 
Note 19 



31 



Balance 



1 
2 

2 



750 

1000 

130 



1880 



1040 



RICH 




& 



GRAY. 









1867. 




1 


20 




Nov. 


23 


2 


130 


> 


Dec. 


28 




810 


— 


Dec. 


31 


960 





Balance 



373 



460 
500 



960 



810 



H Dr. 



HAY 



& 



WOOD. 



Or. 



1867. 

Nov. : 23 Cash 
Dec. 4 u 



400 
400 



1867. 

I Nov. 23 Cash 
30 // 
Dec. 7! // 

28 \,te 20 



1 
2 
2 
2 



500 
700 
615 
560 







HOBERT 












MARTIN. 








i8«r. 
Dec. 


14 


Cash 


2 


300 


t 


1M7. 

Dec. 

1 


30 


Cash 

m 


2 


400 





H. P. 



FORD & CO. 



1887. 

Dec. 31; Cash 



600 



CERTIFICATES 



1867. 

Dec. 1 31 Cash, 



Dec. 
Dec. 



2^ 

I 

21 



No. 1 2 



If 3 
<r 5 



2 
2 



700 

600| 

2000 



OF DEPOSIT. 



1887 

Nov. 23 Cash, 
30; If 



Dec. 



14 



374 



If 
If 

If 



No. 1 



// 3 2 
w 4 2 



700 



// 2 2 ' 1000 



600 

900 

2000 



GENERAL LEDGER, 



ERIVATE BANKER'S ACCOUNTS. 



1. When there is no Journal kept,, this book is posted exclusively from the Cash Book 

Jt has no other auxiliary. >*, 

2. It is closed whenever the partners desire to divide the profits or see the results of 

their business 



375 



I Dr. 


P. 












DUFF. 




Cr. 




Dec. 


31 


Balance f 


4 


22482 87 

1 


18C7. 

Nov. 
Dec. 

Dec. 


2 
31 

31 


Cash 

Profit & Loss f 


1 
4 


20000 

2482 


87 






22482 


87 


22482 


87 






• 


Balance 


22482 


87 



WM. 



1867. 

Dec. 


31 


Balance f 


4 


11241 


1 
43 


1867. 

Nov. 
Dec. 

Dec. 


2 
31 

31 


Cash 

Profit & Loss f 


1 
4 

• 


10000 
1241 


43 






11241 


43 


11241 


43 


« 








• 

Balance 


11241 


43 



Dr. 


DEPOSITORS' 








ACCOUNT. 




Cr. 


^ 


1887. 

Nov. 


2 

7 
8 


Cash 

11 




1000 

675 

1600 




1867. 

Nov. 


2 

7 
8 


Cash 
It 
II 




2200 

1900 
2200 






9 


If 




2400 






9 


It 




3260 1 




10^ 


II 




1100 






10 


It 




3049 




XV 

16 


If 




1300 






16 


II 




5985 1 




23 


It 




7920 






23 


II 




2900 




3(1 


II 




4920 






30 


i| 


6630 


Dec. 


4 


II 




560 




Dec. 


7 


// 




8815 , 




7 

14 
21 
28 
31 


It 
1 

It 
If 
II 




360 
430 

2850 
3640 
6700 






14 
21 
28 
30 
31 


It 
II 
It 
It 
It 




9960 1 
2700- 
1410* 

800! 
13910 






Balance f 


4 


30354 




Dec. 


31 








! 
I 




65809 






65809 

t 










Balance 


30354 






















1 

I 



I 



w. 



WOOD. 



1867. 

Dec. 


31 


Balance f 


4 


11241 


44 
44 


1867. 

Nov. 
Dec. 

Dec. 


2 
31 

31 


Cash 

Profit & Loss f 

Balance 


1 
4 


10000 
1241 


44 






11241 


11241 


44 








11241 


44 



CASH 



ACCOUNT. 



1867. 

Nov. 
Dec. 



Dec. 



3C 
31 



Sundries 



31 Balance 



78343 66 

68883 08 



147226 74 





Sundries 

// 
Balance 



1 
1 

4 



376 



51810 

88679 

0737 



147226 



74 
74 



BILLS 



1867. 

Nov. 



Dec. 



Dec. 



2 
9 
11 
23 
7 
14 
21 
2g 

f 
311 



Cash 



31 Balance 



'^ 



17400 

4200 

1600 

7400 

3800 

4500 

5600 

12600 

24000 

15000 

1254 



97354 



68354 



RECEIVABLR 



1867. 

Nov. 
Dec. 



23 
30 
14 

28 
31 



Cash 

// 
It 
It 
It 
It 
It 
Balance 



377 



I 



5600 
4000 
2800 
4200 
3600 
3800 
5000 
CS354 



97354 



3 Br. 



DISCOUNT 



ACCOUNT. 



Ce. 



Dr. 



R. P. 



(Cincinnati, 0.) 



DUFF. 



Cr- 4 



18C7. 

Nov. 



Dec. 



Cash 



K 

2i 

30 

4 

7 
21 

281 
31 



ofit & Loss f 



20 
37 
12 
15 
75 
105 
31 
15 
24 
56 
12 
50 
4965 



5417 



74 



1807. 

Nov. 



Dec. 



i 



Cash 

7! // 



1 

2^ 

30 

4 
7 

14 
21 
28 
^ 
30 
31 



// 
It 
It 
n 
n 
II 
II 
.11 
II 
II 
n 
II 
It 



158 

69 

25 

39 

62 

154 

110 

1260 

75 

2618 

80 

143 

306 

200 

113 



5417 



92 



70 
47 
57 



50 
60 

80 

84 



34 

"74 



1867. 



Dec. !30 



Dec. 



31 



Cash 



Balance 



THOMAS P. 



1867. 

Dec. 



Dec. 



31 



31 



Cash 



Balance 



130 



130 



1807. 

Dec. 



81 



Balance 



(New Orleans.) 



SHEPHERD 



960 i 



960 



1867. 

Dec. 



31 



Balance 



130 



960 



\ 



I 



DUFF 



(New York.) 



BROTHERS & CO. 



1867. 



Dec. 28 Cash 



Dec. 31 Balance 



1188 



1188 



188 



1807. 

Dec. 



3l| Cash 

Balance 



1 

4 



1000 

188 



1188 



THOMAS 



(Chicago.) 



THOMPSON & CO. 



1887. 

Dec. 


31 


Cash 

Balance f 


1 
4 


4950 
1050 




1887. 

Dec. 
Deo. 


31 
31 


Cash 


I 

1 


6000 










6000 




6000 






tt 
• 




Balance 


10.50 





378 



PROFIT 




BALANCE 



1867. 

Dec. 31 



Cash f 1 

Bills Receivable 2 

Duff Bros. & Co. 3 

R. P. Duff 4 

T. F. Shepherd 4 



& 



LOSS. 



2482 ! 87 
1241 ; 43 
1241 : 44 



4965 ; 74 



18C7. ' ! 

Dec. 31 Discount 



4965 1 74 



4965 74 



ACCOUNT. 



6737 

68354 

188 

130 

960 

76369 


74 

74j 


1867. 

Dec. 

• 


31 





Depositors f 
Thompson & Co. 
P. Duff 
Wm. Hay 
W. Wood 



379 



30354 I 
1050' 
22482 87 
11241 43 
11241 44 



76369 I 74 



;ii 



SELECTED PROBLEMS IN ACCOUNTS. 



1. 

2. 
3. 
4. 

O. 

6. 



8. 

9. 
10. 
11. 
12. 
13. 
14. 
15. 
16. 
17. 
18. 

19. 
20. 
21. 
22. 
23. 
24. 
25. 
26. 
27. 
28. 
29. 
30. 



QUESTIONS FOR EXAMINATION ON PRIVATE BANKER'S ACCOUNTS. 

What office does the Cash Book perform? (N. 1, p. 351.) 

Into what book are its contents posted? (N. 1, p. 351.) 

Where are the aggregate monthly receipts and payments posted from? (N. 2, p. 351.) 

What is entered in the Deposit Register? (N. 1, p. 355.) 

Where are the daily amounts carried to? (N. 1, p. 355.) 

Into what book do we post the particulars? (N. 1, p. 355.) 

What does the'Check Register record? (N. 1, p. 356.) 

Where are the amounts transferred ? (N. 1, p. 356.) 

How often ? (N. 1, p. 356.) 

Where do we post the particulars? (N. 1, p. 356.) 

What is entered on the Bill Book ? (N. 1, p. 358.) 

Where are the discounts entered? (N. 1, p. 358.) 

Where do we enter the payments? (N. 1, p. 358.) 

Where dd we record the maturity of discounted paper? (N. 1, p. 358.) 

What does the Collection Register record ? (N. 1, p. 360.) 

What is done with the net proceeds of collections? (N. 1. p. 360.) 

When are Foreign Notes or Bills remitted for collection? (N. 2, p. 360.) 

When you are notified by your agent of the payment of a collection, how is it entered ; 

(N. 2, p. 360.) 
What is recorded in the Discount Book? (N. 1, p. 362.) 
When and where are the amounts carried to? (N. 1 . p. 362.) 
How many Ticklers are kept by some Bankers ? Q\. 1, p. 365.) 
How do we enter the notes as they are paid? (N. 2, p. 365.) 
What is done with protested paper ? (N. 2, p. 365.) 
Who pays the expenses of a Protest ? (N. 2, p. 365.) 
What accounts are kept in the Depositor's Ledger ? (N. 2, p. 369.) 
What books is it comjlbsed from ? (N. 2, p. 369..) 
When are the accounts in it balanced ? (N. 2, p. 369.) 
What must the aggregate balances agree with ? (N. 3, p. 369.) 
Where are the contents of the General Ledger posted from? (N. 1, p. 375.) 
When is it closed ? (N. 2, p. 375.) 



380 



PROBLEM I. 

W- X., Y., and Z. bought of A. on joint account, each }, $20000 worth of sugars, for 
which W. as manager of the sales gave his note to A. at four months, indorsed by the other 
partners; and each partner made conforming entries in his books. Afterward, A. offers 
W. 5 per cent, discount off the face of his notes, to cash them, which W. on conferring 
with X. and Y. agrees to, Z. being a resident of Philadelphia, to which place he had re- 
turned after entering into the above transaction. W. pays his own share and half of Z.'s 
in cash, less the 5 per cent, discount. X. pays his own share and one-fourth of Z.'s, less 
the 5 per cent, discount, in a draft at sight on C, of New York, which A. accepts in pay- 
ment at f per cent, premium; X. allowing him 1 per cent, brokerage on the face of the draft 
for negotiating it. Y. pays his own share and \ of Z.'s, less 5 per cent, discount, in a draft 
at 60 days' sight upon Z., which A. accepts in payment at 2 J per cent, discount, drawn for 
such sum as will cover the transaction, and 1 per cent, brokerage on the face of the draft, 
which A. charges for negotiating it. On advice of this second arrangement, Z. makes con- 
forming entries in his books. Afterward W. orders him to invest the amount which he had 
advanced for him in the above transaction in bills on New Orleans, and remit, on W.'s 
account, to B., of that place. This was done in bills at 2* per cent, discount, which closed 
the account, and covered \ per cent, brokerage on the face of the bills, which Z. charged 
for investing. 

Required the correct amounts and the correct Journal entries of W., X., Y., and Z., in 
each of the above transactions. 

PROBLEM 11. 

A., B., and C. purchased the machinery and hull of an old steamer called the "Vixen," 
for $10000, of which A. paid $4000, B. $3400, and C. $2600. They afterward sold \ of 
the purchase to D. for $2000 cash, which they divided and drew out of the concern in such 
proportions as left them all \ ovrners. In these proportions as owners, and with this 
machinery, they built the steamer " Yolante.'' In addition to their shares in the machinery, 
A. paid in cash $l'261, B. $1320, C. $1410, and D. $1430. After running fifteen months, 
the boat was sunk and lost. The accounts on her books then stood as follows : 



Steamer "Volante" 
Steamer "Vixen" 
Freight account 
Passage ii 
Wages II 
Fuel w 

Expense ii 
Bills Payable 
Bar account . 



DcbiU. 

$14894.83 

«4.35 
0.67 

21923.88 
11843.02 
24134.27 

130.30 



Credits. 

$265.39 
35803.04 
28375.17 



104.01 
8450. 
363.71 



Effects saved from the wreck realized $2860. C. and D.'s shares were uninsured. A 
had $4000 and B. $3000 insured on their shares, valued at $5000 each. The amounts in- 
sured when recovered, and the amount realized by the owners from the wreck, were applied 
in discharging the above claims against the vessel. Each owner was \ gain or loss. Re- 
quired the settlement of the transaction between them. Also, the division of D.'s purchase- 
money between A., B., and C. 

PROBLEM III. 

A., B., and C. agree to do business in partnership, on the following terms: C. is to 
manage the business, and to have a commission equal to half the net gain on the business 
for the management of it. A. pays in $2600 capital, B. $1400, C. $1200. C. draws out 
$2400. At the end of the year they have cash on hand, $3000 ; merchandise, $2400. 
They owe $500. Their expense account is Dr. for $600. The gain or loss to be divided 
equally. 

Required the balance due each; also, the amount of C's commission. 

381 



il 






^ ^1 



*'• 



SELECTED PKOBLEMS. 



PROBLEM IV. 

C. is manager of a joint speculation in flour with D. and E., of which C and T) ,r. 
each i and E i proprietors. C. takes $12,000 worth of the joint property to his private 

He pays U $1500 m merchnndise, and gave his (C.'s) note for $1000, and save ud his 
(D^s) own note which he held against him for $500. He paid E his * ( Seoom mnan 
in flour belonging to the Company, and $3000 in his (C.-sfdrafron F of NewVork at 
hrotZ:'^\"'^^ ^l cent, discount for such sum as Will Ler the $3000 and* per cen' 
brokerage on the face of the draft, which E. charges for negotiating it. ^ 

Required C.'s Journal entry, with the correct amounts composing it. 

PROBLEM V. 

T fc^!nTl! "^^°"'' T^ "y'"'^ "" "^"'"S business on joint account. As manager of the sales 
Sor losr On"thr ""^ ^'"Z:" ^""K'' '"'^'^ *« *'"« of 1^' «<>• sales eahpartae; 

insut:: p^!r^:'^:^:l,l't'^^^^ '- «». s^es. I^ave paid 

rectr my i7v JcToflhTrmf '"^ ^""' '''''^''"' ^''°' ^°""^' ^^"^ -"7> -"en he 

PKOBLEM VI. 
J ^^^'.^' ^7®' and J. KiDg, owners of steamer "Albatross." 
Jt^r%i;\rrn^L^it^a7p:ar°^t"^^^^^ ^^ -^^S ^He 

J. Bay paid in S2400, drew out 81158 
■ Howe // 2690, /a 1212 

J. King // 4950, // 2750 

the bo'at $157" *''*'' "' '•"' ""'' "'""''' *''' '*-"" -^-k. $820, and debts due 
Required the settlement between the owners of the boat. 



PROBLEM Vn. 

^ 81440 

p 1465 

i; 1485 

^ 1610 

$6000 
which sums were placed to the credit of their respective accounts on the vessel's books 

382 



SELECTED PKOBLEMS. 

For the balance of $2000 they gave their joint note, which was afterwards taken up with 
, funds earned by the boat. 

At the end of six months, D. sells out his interest, as it then stood upon the books, to 
C, who paid him for the same out of his own private funds. The remaining owners some 
time afterwards sold the vessel for $6500 ; and, after discharging all claims against them, 
they have cash and other effects left amounting to $6450. The books were kept by Single 
Entry, and no settlement took place since the commencement of their connection. Their 
accounts now stand upon their Ledger as follows : — 

A/s account debited for sums withdrawn, $2050, and credited for sums paid in, $2255 
B/s » ff 1 1640, nun 2060 

C.'s nun 1750, n w a 2110 

D.'s n M It 1965, « * » 2090 

No interest to be computed in the settlement. Required the division of the above $6450 
between A., B., and C. 



PROBLEM VIIL 

On January 1, 1867, Brewer, Malt & Co., of Pittsburgh, sent their clerk, W. Porter, 
to Louisville, to establish an agency for selling their ales. On 30th June following, the 
agency was discontinued, and they rendered the following account to Porter, the items of 
which both parties agree are correct, but Porter thinks the balance is not correct. Is it 
80 ? or, what is the correct balance ? 

> 

MB. WALTEE PORTER 



Dr. 



In Account with BREWER, MALT & CO., Cr. 



1867. 

Jan. 



June 



1 
30 
30 



To Cash advanced. 
Invoice of Ales , 

Cash 

Invoice of Ale. , 
Cash for sales.. 
Ale returned... 



1/ 



II 



To Bal. due B., M. & Co. 







1867. 


191 




Feb. 


297 




Mar. 


389 


; 


May 


298 


June 


2938 50 




810 


50 




4923 


608 







1 
1 
1 

30 



By Cash paid for Barley 
II Casl^aid for Hops... 

II Paid Kent 

II Paid Expenses 

// Salary 

Ale returned 



I! 



! 



// 



1508 

1007 

260 

40 

690 

810 

Balance due 608 



50 



4923 50 



PROBLEM IX. 

Lea & Preston purchase of J. Stanley \ of the steamer " Herald," which is h his paid- 
up capital (at his credit on the books) of $6500, for which they pay him $4000. They 
have an account against the boat for repairing machinery of $1250, which it is agreed is 
to stand as part payment ; the balance they pay Stanley in cash. Required the Journal 
entry to introduce the new owners into the books. 

383 






INDEX. 



ii 



Abbreviations 

• • • • 

Acceptance, form of, Form XI 

Accepting a correspondent's draft, Jan. 3, p. 70*; Feb. 20 * 

Accepting supra protest for honor of drawer, Apr 10 

Account Books, directions for ruling .... 

Accounts current with interest . 

forms of 

of sales, form of , , ' ' 

, on jomt account 

personal. Rules III. & IV., p. 38: note 3 . ' . ' 
Profit & Loss, how kept, Rule VIII., p. 40; Note 1 
property, how kept, notes 1 & 2, p. 35 : Note 7 
property, Rules VI. & VII 

Addition, method of proving 

Advance and discount compounded, Ex. 10, 11, 12 13 

Average gain or loss on Mdse. account, Rule 

Exercises 
Average, General, computations in . 



Balance account. Double Entry 

Single Entry . . . ' . * 

Balance Sheet, form of 

Bank Stock received in legacv, Anr 10* 

Bill Books, forms of ^ -f ' ^ ' ^" * • • 

Bill of Exchange (foreign), accepting, * 

collection of, 

payment of, 

payment of acceptance, 

purchase of, 

purchase of, on commission, 
„., sales of, ... 

Bill of Parcels, form of 

Bills and notes paid in instalments. Notes 3 *& 4 

Bills of Exchange, &c., Rule IX 

Bills Payable account, directiDns for 

Receivable account, directions for 
Boards, computing the price of . 
Bottomry Bond, cash lent on, Feb. 25 

collected, Apr. 25 .*.*.* 

Cash account, directions for 

why balance monthly . 
Cash Book defined . . . . . ' . * . 

directions for ruling 
Cash entry for lost money when found, . Feb 25 

received for investment on joint account. Mar. 1 

Cash Sales Book 

Check Book balanced, with part of the checks unpaid * 

defined 

form of 

Ciphers, why not used in cent columns. Note 8 . ' 
Closing the Ledger, specifications for exercises 
Commission & Brokerage computation 

adjusted with a retiring partner, Ex. 10 

Rates by New York Chamber of Commerce 

n • . o 1 X, P^^i^adelphia Chamber of Commerce 
Commission Sales Book defined 

Consignment, amount unsold taken to account, * Mar*. 12 
(foreign), received on joint account, Apr. 20 
Consignments, average time upon, how found, . 

384 



Feb. 20 
Feb. 25 
Feb. 18 
Mar. 5 
Feb. 25 
June 12 
Feb. 28 



PAGE 

. 21 

119 

. 76 

86 

. 163 

114 

20, 116 

117 



118 

23 

24 

23 

39 

197 

198 

36 

198 

211 



35, 113, 134, 174 

17 
. 175 

84 
. 48, 148 

76 
. 76 

76 
. 80 

76 
. 94 

78 
. 20 

52 
. 40, 118 

34 

. 33 

210 

. 76 

88 

. 34 

112 

. 9, 53, 144 

57 

76 

78 

8 

219 

146 

146 

27 

213 

199 

204 

192 

191 

65, 143 

80 

. 88 

68 



INDEX. 

rA«a 

Consignments (foreign), received, entry for, Feb. 1 74 

made to others, Rule XL ' . * . * . * 41 

received and reconsigned to others, Feb. 12 74 

received, Rule for conducting. Rule X * . * . * 41 

for finding the net proceeds, Note 25 41 

Day Book, Double Entry, definition of 24 

opened in individual business . . . . . * . ' 28, 70 

Single Entry, definition of 14 

opened in partnership XO 

Six-Column ' . " . * 125 

the book of original entry. Note 1 25 

Deranged Double Entry books, to rectify .*.'.'.* * 215 

Discount, by bank, entry for, Feb. 6 . '.*.*.*. 74 

by myself, of notes, Dec. 21 *.*.*.' * 30 

Drafts received for collection, Feb. 25 '.'.*.'. 76 

Endorsed Note, form of, Form XVII ng 

Equations, compound *.*.*.* * 209 

simple .*.*.'.*.'.'.*.'.* 207 

storage 208 

Errors, detecting and correcting *.*.'.*.*.* 98 163 

Estate, bankrupt, division of assets, Ex. 14 . . . .'.*.*,*.'. .217 

Exchange, indirect *.*.*.'.* * * 206 

Exchanges, domestic and foreign *.'.'.*.* * 205 

Executor of an estate, payments as, . Mar. 16, 17 . * . * , * . * . * . * . * g2 

. property received as, Mar. 12 * ... 82 

Exercises for the final examination of the student ^^ 

in closing the Ledger '.'.*.*.*. 213 

in discounting business paper 221 

in making out invoices . ^ . * . * 219 

in opening books *.'.".'.*.* 212 

in stating accountsf of sale *.*.*.*.* 207 

in the settlement of consignments ' , ' * 220 

in the settlement of joint accounts . . . .*.*.*,*. 220 

Expense Book, directions for keeping , , . , ,',*,*,* * * 147 

Foreign importation, on my own account, Dec. 1, p. 30: Feb. 1 . . 74 

Freight, computing '.'.*.* 210 

Freight of vessels tjo 

Gain & Loss, adjustment between partners ....*.., 203 204 
House, Insurance of, Feb. 18 . . . ^n 

Insolvent debtors, compounding with, Jan. 20 72 

note compounding for, Feb. 12 *.'.'.*.*.*.*. * 74 

Insurance, effected on a ship as agent. Mar. 4 * 78 

on a shipment as agent, May 31 . , ' , \ ' * ' * 99 

on my house, . . Feb. 18 '.*.'.* 76 

* on my store, . Feb. 18 75 

covering the premium and policy, Ex. 5 

settlement with the insurers for loss by fire, Feb. 28 . * . * . * . * . ' 73 

with the underwriters, . . June 18 * 94 

Interest, abbreviated rule for computing .... ... ^ 

adjustment of * ' iqa oaq 

legal rates in different States . . . ,.*.*.*.' * * foo 

mercantile and legal, rule for computine oni 

Inventory, forms of . . . . ^ ° . * . * * * " ' .g 61 m 

Invoice Book, defined .... ' tlill 

form of . . tq'lf? 

formsof . . . . . . * ^?^^ll 

Invoices, exercises in making 219 

Joint accounts, closing with a loss, June 1 94 

with gain. Mar. 5 . . .'.'.*.' ' * * 80 

with part sold, Note 4, 1st Co. Sales . .'.*.'.*.' 109 
z 385 



i! 



• r 



Mar 
Mar 



INDEX. 

Joint accounts, closing with property returned unsold, June 25 

with sales complete, Note 13 
defined ........ 

Rule for conducting as manager, XII. 

as silent partner. Note 9 
for finding net proceeds, Note 1 
when our share is paid in by a partner, Mar. 1 
when we find our partner's stock, 
when we find a part of partner's stock 
Joint Promissory Note, form of, XII. 
Journal, checking of, Note 2 

definition of ... 

directions for posting 
monthly .... 

Six-Column 

use of, Note 6 . . . 
Journalizing, from the auxiliaries 
monthly 
Rules for 
Journeymen's wages, entry for, Feb. 1 
Judgment Note, form of, Example 9 

Key to principal articles . . • 

ledger, closing in partnership 

Double Entry, definition of . 
on opening and closing 
opening in partnership 
private, form and definition 
rules for closing . 
Single Entry, definition of 
on closing 

re-opening by Double Entry 
Letter of Advice, form of, Form XXI. 
of Credit, form of. Form XIX. . 
of Introduction, form of, Form XVIII 
Loan upon an endorsed note, Apr. 1 



Manufacturers' Time Registers, form of . 

Merchandise account, directions for 

daily sales of, how found by average 
gain per cent, on sales, how found 
imported on private account, Feb 



Note 14; 



insurance of, . . . . Feb. 18 
received for sale on joint account. Mar. 1 



2 

28 



Notes, accepting supra protest, for honor of a correspondent, Apr 

collection of, when past due, Apr 

promissory, accommodation, entry for, . . Jan 

forms of ...... . 

when endorsed, due and unpaid, entry for. Mar. 16 

Opening Books, specifications and exercises in 
Orders, forms of 



Partnership Books closed with profits equal . 

with profits unequal . 
introducing a new partner 

opened 

settlements 

settlements by single entry 

settling after dissolution 

Payment of draft for honor of a correspondent, Apr. 10 

of our note under protest, . . Apr. 29 

Posting defined, Note 7 

from the primary books to the Ledger 

how marked, Note 8 

386 



10 
20 
31 



PAOB 

96 

43 

42 

43 

42 

43 

78 

78 

84 

119 

32 

25 

32 

163 

157 

25 

162 

163 

26 

126 

222 

183 

130 

23 

32 

129 

173 

99 

14 

18 

19 

120 

120 

120 

84 

186 
33 
36 
36 
74 
76 
78 

86 
86 

72 

119 

82 

212 
118 



174 

134 

136 

124 

177, 215 

13, 214 

176 

84 

88 

24 

162 

24 



INDEX. 

PA6B 

Private Ledger, how opened and closed 173 

Profits divided equally '.*'.'.' 174 

divided in proportion to capital 134 

to time and capital . 216 

Promissory Note, form of, X ' . .119 

Proof Sheet, an improved form for monthly trial * . . 172 

forms of * 36,'l35,'l71, 183 

Property, entry for rent, Jan. 18 72 

repairs, Jan. 18 72 

received as executor, Mar. 12 g2 

received from legacy, Dec. 14 .30 

Quantity of goods for a ton, in freighting . . 194 

Receipts, forms of j^g 

how taken upon a Day Book or Cash Book, Feb. 20 . .*.*.'.*. 7*6 145 

Receiving and Forwarding Register, form of * . ' igg 

Rents, collecting *.'.'.' * 88 

Rules for closing the Ledger *.*.'.'.*.* 99 

computing time when bills and notes fall due . .*.*.*.*.*.' 45 

debiting and crediting. Single Entry * * 7 

Journalizing "'.*.'.* 26 

with illustrations 38 39 40 41 

Ruling books of account * ' ' 'igo 

directions for * . * . " * 5ft 

Running time on business paper, in days '.'.*.' * 45 

in months * . * . 45 

Sales Book defined go iQg 

form of ....'. 63 138 

Scantling, computing the price of *.*.".*.' 210 

Settlement of accounts by "starring out balances . . . .'.'..,',* 218 

Ship, purchase of, Jan. 20 * . ' * 22 

sale of, June 30 * . ..*.'.'.' 95 

Shipment, closing with a gain, . . Mar. 12 ' . * ' 80 

entry for returns, . . Mar. 12 . . . .*.*.'.*. 80 

(foreign), loss of, at sea, . June 18 . . ' . . .*.'.* * 94 
(foreign), on joint account . Apr. 10, 15 . . ' . .'.*.*.'. 85 

(foreign), our own account, Apr. 5 .84 

on account of another person, Feb. 12 *.*.*.*. 74 

on our own account, entry for, Feb. 12 . . . .*.'.*.'.* 74 

Rule for. Rule XI *.*.*.. 41 

Specifications and exercises in stating invoices * * 219 

Stock Account, directions for '.'.*,' * * 33 38 

Stocks, buying and selling. May 4, . . . . . .*..'.*.*. 90 205 

Storage Equations * . * . ' * * * 208 

rate for, by Chamber of Commerce, New York . . .'.'.*.*. 193 
by Chamber of Commerce, Philadelphia . . .'..'.'. 190 

Sundry Crs. account ' " * yr^ 

Drs. account * . ' . * * * 170 

Suspended List *.'.*.'.".* * 134 174 

Time Registers, forms of i og 

Trial Balance (proof sheet), forms of *.'.'.*. 36 13*5 171 

Sheet, new form for monthly . . . > . . . .*.*.*.' ' 172 

Unexpired time on business paper, how found, Ex. 51 to 55 201 221 

Vessel, disbursements as agent, Mar. 4 ^ ^ 70 

loan on bottomry bond of, Feb. 25 . . . .*.*.*.'.*.* 76 

purchase of, as part owner. Mar. 2 *','.*.*. 78 

as sole owner, Jan. 20 " . * . * 72 

receipts as agent, . , Mar. 5 '.'.*.' 80 

Winding up partnership accounts yj^ 

387 



^ 



i 



\ 



INpEX. 



INDEX TO NATIONAL BANK BOOKS. 



PAOS 

Articles of Association ^ 

By-Laws ^^ 

Bank Note Register ^°^ 

Cash Book, General, defined ^' 

Paying Teller^s 269 

Recei^ng Teller's 261 

Collection Register, City 287 

Foreign ^* 

Passed City and Foreign 291 

Remitted for 290 

Certified Checks 273 

Certificates of Deposit ^^ 

Discount Book -j^ 

Depositor's Ledger, Improved form of f^ 

Dividend Book • J^o 

• Check, form of . . . ^^ 

Forms, Authority to sign business paper ^^ 

Certificate of Deposit ^^ 

Certified Check {j^ 

Dividend Check 309 

Power of Attorney to transfer stock ^^ 

Protest for non-payment 286 

Semi-annual Statement jjj^^ 

Teller's daily Statement 274 

Foreign Bill Book 280 

Bills of Exchange 280 

Bill protested ' * ' * * qaq 

General Ledger ^^^ 

Introductory Remarks 242 243 244 

Instalment Lists ^^ ^^^' ^ 

, Scrip 245 

Journal j^^ 

Ledger, Depositor's J^' 

General i^t 

Stock ' ' ' lu 

Standing, form oi ^^;!- 

Minute Book 229 

OfferingBook * 989 

Protest Book ^°^ 

Protested paper, account of, how kept ^o^ 

Protest, form of ^ 286 

Passed City and Foreign Collection Register 291 

Questions for Examination ^12 

Register of Signatures 268 

'"^S^^S^of • ■. • .•.•.•.•.•.•.•.•.••• 2^2.^1 

Ledger 257 

Register ^^' 

388 



Stock, Subscription to 241 

Transfer of 246 

Transfer of, by Power of Attorney 252 

Transfer Book, form of 246 

Teller's Statement, form of 274 

Tickler 293 



INDEX TO RAIL ROAD BOOKS. 



Construction and Equipment Day Book 
Dividend Book .... 
Forms, Local Bill of Lading . 

Petroleum Bill of Lading 

Through Bill of Lading , 

Through Manifest 

Way Manifest . 
General Ledger 
Introductory Remarks . 
Journal 
Ledger, General . 

Stock . 
Operating Expenditures 

Receipts . 
Questions for Examination 
Stock Ledger . 



315 

340 
322 
330 
322 
328 
328 
341 
314 
331 
341 
337 
323 
329 
348 
337 



INDEX TO PRIVATE BANKER'S BOOKS. 

Bill Book 35g 

Collection Register ' 360 

Cash Book . 351 

Check Register .356 

Deposit Register 354 

Discount Book 362 

Depositor's Ledger . . 369 

Foreign Collection Register 360 

"Five-Twenty" Bonds, form of 364 

General Ledger 375 

Ledger, Depositor's 369 

General 375 

Preliminary Remarks 351 

Questions for Examination 380 

Tickler 365 



389 



RECOMMENDATIONS. 



" It gives a clear insiglit into this science through all its gradations, from the simple 
style of the retailer to that required for the most varied and complicated commercial busi- 



RECOMMENDATIONS. 



THE FOLLOWING RECOMMENDATIONS INDICATE THE PUBLIC SENTIMENT IN 

REFERENCE TO THIS WORK. 

Extract from the official report of a Special Committee of Merchants of the Chamber of 
Commerce of the city of New York : 

Chamber or Commerce, New York, Feb. 6, 1849. 
At a regular meeting of the Chamber, held this day, the following report was presented, 
accepted, and a copy ordered to be transmitted to Mr. Duff. The committee to whom was 
referred the subject of Mr. Duff's work on Book-keeping, Rep(yrt^ That they have examined 
the work submitted to them, and deem the favorable opinions which have already been ex- 
pressed by gentlemen of competent authority, and prefixed to its pages, well deserved, and 
in this case very properly bestowed. 

Respectfully submitted, 
(Signed) CHARLES M. LEUPP, Merchant. 

LEOPOLD BIERWIRTH, do. 
ROBERT KELLY, 

President of the Board of Education. 
Extract from the Minutes. 
Prosper M. Wetmore, Secretary. 

Extract from a report of a Special Committee of Merchants and Accountants, appointed 
by the Board of Managers for the American Institute, to examine this work : 

" Your committee are so favorably impressed with the proposed improved method of Mr. 
Duff, that they unanimously concur in the opinion of its utility, and that the public would 
be benefited by adopting it." 

I certify that the foregoing is a true copy of a Report of a Special Committee, made to 
and adopted by the American Institute of the city of New York. 

GURDON J. LEEDS, Recording Secretary. 

" It contains much matter that is important and interesting to the merchant and man of 
business, to whom it will be found highly useful." C 0. HALSTEAD, 

Late President of Manhattan Bank, N. Y. 

*' It is by far the most complete work of the kind I have ever seen." 

JAMES B. MURRAY, 

President Exchange National Bank, Pittsburgh. 

" I differ entirely from those who think the counting-house the best place to learn Book- 
keeping in. From this work it is learned in its application to every form of business, un- 
trammelled by the peculiar details of any one kind of business." 

THOMPSON BELL, 
President Commercial Bank of Pittsburgh. 

" No other work upon Book-keeping, so far as my knowledge of them extends, explains 
the subject with so much clearness and simplicity." F. W. EDMONDS, 

Late Cashier Mechanics' Bank, Wall Street, N. Y. 
390 



ness 



A. S. FRASER, 
Cashier Seventh Ward Bank, N. Y. 



" I graduated in Duff's College in about half the time that I expected. His admirable 
system leaves out nothing essential, nor puts in any thing superfluous." 

J. R. COMPTON, 

Cashier of the Niagara Bank, Lockport, N. Y. 

" I admire your system of Book-keeping. Since I acquired a knowledge of it, some years 
since, through Mr. David Parsons, I have put it in practice in different branches of busi- 
ness, and have always found it work like a charm. I have recommended it to my friends 
as containing all that is necessary to make the most thorough accountant." 

R. LAMB, 
Cashier People's Bank, Bellefontaine, Ohio. 

" Duff's Book-keeping is, without doubt, the best adapted to a business education ever 
published. Students save about half the time and labor required by other systems." 

JOHN J. JONES, 
Book-keeper First National Bank, Wheeling, Va. 

" The new method of checks and balances will, if carried out, prevent errors, or, if made, 
they will be more readily found than by any other system." 

DAVID L. BROWN, 

Late Book-keeper to the Merc, and Manuf. National Bank, Pittsburgh. 

" It is in every way calciriated to impart that knowledge necessary for the experienced 
book-keeper. Every thing is made plain and easy to be understood." 

J. CAROTHERS, 

-' Formerly Banker, Wood Street, Pittsburgh. 

" Your work on Book-keeping is the most clear and comprehensive that I have met 
with." JOHN SNYDER, 

Late Cashier Bank of Pittsburgh. 

" It is evident that you have brought to the study of Book-keeping a clear head which 
has lost none of that clearness by the long cultivation of an accurate science. It is impos- 
sible to make the subject of accounts more easy of comprehension to the young beginner; 
and, what is often still more difficult, you have made it so to the old learner." 

W. H. DENNY, 
Late Cashier of the Merchants' and Manufacturers' National Bank, Pittsburgh. 

" I knew little or nothing of Book-keeping when I entered your College. Since leaving 
it I have had charge of the books of this banking firm for nearly six years, and have kept 
them without difficulty. During my leisure hours I settled up the books of a mercantile 
firm, and have met with nothing but what was fully explained in your course of instruc- 
tion." M. HUNNINGS, 

Of the firm of Kramer & Rahm, Bankers, Pittsburgh. 

" I took charge of the books of this extensive banking-house immediately on leaving your 
classes, and have every evidence that I give them perfect satisfaction." 

J. W. DAVITT, 

Of the firm of Kramer & Rahm, Bankers, Pittsburgh. 



" My tuition fee in Duff's College and the study of his new system of accounts was among 
the best investments I ever made." C. E. BABCOCK, 

Book-keeper State Bank of Iowa, Fort Madison. 
391 



EECOMMENDATIONS. 



RECOMMENDATIONS. 



THE FOLLOWING RECOMMENDATIONS INDICATE THE PUBLIC SENTIMENT IN 

REFERENCE TO THIS WORK. 

Extract from the official report of a Special Committee of Merchants of the Chamber of 
Commerce of the city of New York : 

Chamber op Commerce, New York, Feb. 6, 1849. 
At a regular meeting of the Chamber, held this day, the following report was presented, 
accepted, and a copy ordered to be transmitted to Mr. Duff. The committee to whom was 
referred the subject of Mr. Duff's work on Book-keeping, -i?epor?, That they have examined 
the work submitted to them, and deem the fayorable opinions which have already been ex- 
pressed by gentlemen of competent authority, and prefixed to its pages, well deserved, and 
in this case very properly bestowed. 

Respectfully submitted, 
(Signed) CHARLES M. LEUPP, Merchant. 

LEOPOLD BIERWIRTH, do. 
ROBERT KELLY, 

President of the Board of Education. 
Extract from the Minutes. 
Prosper M. Wetmore, Secretary. 

Extract from a report of a Special Committee of Merchants and Accountants, appointed 
by the Board of Managers for the American Institute, to examine this work : 

" Your committee are so favorably impressed with" the proposed improved method of Mr. 
Duff, that they unanimously concur in the opinion of its utility, and that the public would 
be benefited by adopting it." 

I certify that the foregoing is a true copy of a Report of a Special Committee, made to 
and adopted by the American Institute of the city of New York. 

GURDON J. LEEDS, Recording Secretary. 

" It contains much matter that is important and interesting to the merchant and man of 
business, to whom it will be found highly useful.'' C. 0. HALSTEAD, 

Late President of Manhattan Bank, N. Y. 

" It is by far the most complete work of the kind I have ever seen." 

JAMES B. MURRAY, 

President Exchange National Bank, Pittsburgh. 

" I differ entirely from those who think the counting-house the best place to learn Book- 
keeping in. From this work it is learned in its application to every form of business, un- 
trammelled by the peculiar details of any one kind of business." 

THOMPSON BELL, 
President Commercial Bank of Pittsburgh. 

" No other work upon Book-keeping, so far as my knowledge of them extends, explains 
the subject with so much clearness and simplicity." F. W. EDMONDS, 

Late Cashier Mechanics' Bank, Wall Street, N. Y. 
390 



" It gives a clear insight into this science through all its gradations, from the simple 
style of the retailer to that required for the most varied and complicated commercial busi- 



ness. 



A. S. ERASER, 
Cashier Seventh Ward Bank, N. Y 



" I graduated in Duff's College in about half the time that I expected. His admirable 
system leaves out nothing essential, nor puts in any thing superfluous." 

J. R. COMPTON, 

Cashier of the Niagara Bank, Lockport, N. Y. 

^ " I admire your system of Book-keeping. Since I acquired a knowledge of it, some years 
since, through Mr. David Parsons, I have put it in practice in different branches of busi- 
ness, and have always found it work like a charm. I have recommended it to my friends 
as containing all that is necessary to make the most thorough accountant." 

R. LAMB, 

Cashier People's Bank, Belief ontaine, Ohio. 



" Duff's Book-keeping is, without doubt, the best adapted to a business education ever 
published. Students save about half the time and labor required by other systems." 

JOHN J. JONES, 
Book-keeper First National Bank, Wheeling, Va. 

" The new method of checks and balances will, if carried out, prevent errors, or, if made, 
they will be more readily found than by any other system." 

DAVID L. BROWN, 

Late Book-keeper to the Merc, and Manuf. National Bank, Pittsburgh. 



u 



It is in every way' calculated to impart that knowledge necessary for the experienced 
book-keeper. Every thing is made plain and easy to be understood." 

J. CAROTHERS, 

' Formerly Banker, Wood Street, Pittsburgh. 

" Your work on Book-keeping is the most clear and comprehensive that I have met 
with." JOHN SNYDER, 

Late Cashier Bank of Pittsburgh. 

" It is evident that you have brought to the study of Book-keeping a clear head which 
has lost none of that clearness by the long cultivation of an accurate science. It is impos- 
sible to make the subject of accounts more easy of comprehension to the young beginner; 
and, what is often still more difficult, you have made it so to the old learner." 

W. H. DENNY, 

Late Cashier of the Merchants' and Manufacturers' National Bank, Pittsburgh. 



S 



" I knew little or nothing of Book-keeping when I entered your College. Since leavin 
it I have had charge of the books of this banking firm for nearly six years, and have kept 
them without difficulty. During my leisure hours I settled up the books of a mercantile 
firm, and have met with nothing but what was fully explained in your course of instruc- 
tion." , M. HUNNINGS, 

Of the firm of Kramer & Rahm, Bankers, Pittsburgh. 

" I took charge of the books of this extensive banking-house immediately on leaving your 
classes, and have every evidence that I give them perfect satisfaction." 

J. W. DAVITT, 

Of the firm of Kramer & Rahm, Bankers, Pittsburgh. 

" My tuition fee in Duff's College and the study of his new system of accounts was among 
the best investments I ever made." C. E. BABCOCK, 

Book-keeper State Bank of Iowa, Fort Madison. 
391 



II 



II 



I 

« 



RECOMMENDATIONS. 

" An experience of nine years in business has not yet brought any transaction into my 
hand so difficult as many of your class exercises." E. SPAHR, 

Book-keeper to the National Bank of Commerce, Pittsburgh. 



The following letter indicates the perfection of the course of study in this old and popu- 
lar institution : 

" With no previous knowledge of accounts, nor practice in any kind of book-keeping, ex- 
cept a course of study in Duff's College^ from his system of Book-keeping, I took charge of 
the books of this bank. This treatise certainly combines the most comprehensive system 
of science and practice in accountantship now before the public. It is so judiciously diversi- 
fied that it fits the student for keeping accounts in any kind of business." 

FRED. L. RAINBOW, 
Book-keeper Mechanics' National Bank, Pittsburgh. 



*' I consider this treatise the most comprehensive and complete system of Book-keeping 
that I have met with." T. B. DICKSON, 

Individual Book-keeper Merc, and Manuf. National Bank, Pittsburgh. 

** I readily concur in all that is said of this work by other competent judges. No writer 
upon Book-keeping has had the advantage of such an extensive and varied experience in 
business. I have known him, personally, for upwards of twenty years ; a great part of that 
time as an extensive American and European merchant, as an extensive ship-owner, and as 
a bank director, &c., and in all these departments he has borne the reputation of the highest 
order of business talents. Every thing said or written by such a person, on the subject of 
business, is of interest, not only to young men designed for business, but for those already 
engaged in it." JOHN W. BURNHAM, 

Merchant, No. 8 South Street, New York. 

" You have made good use of your long experience as a merchant in making plain many 
of those matters of business, the want of due comprehension of which so often occasions 
serious difficulties in the counting-house. The accuracy and conciseness manifested 
throughout the whole work, bear testimony to the great care and labor you have bestowed 
upon it." RICHARD IRVIN, 

Merchant, 98 Front Street, New York. 

" Mr. Duff is a man of rare qualifications for business, — a man that will go through with 
whatever he takes in hand. His system of Book-keeping should be studied by every one 
who has any thing to do with dollars and cents." JOHN McD. TAYLOR, 

Merchant, Union Street, New Orleans. 



" Mr. Duff is a merchant of the first respectability." 



J. LANDIS, 

Merchant, New Orleans. 



" Mr. Duff has been recommended to me as a merchant of the highest respectability." 

0. H. BLISS, 
Merchant, New Orleans. 

" I have always pronounced your system the most thorough and diversified course of 
training for business, before the public. The most experienced accountant will recognize, 
in your plan of rectifying deranged books, a new and most ingenious method of bringing 
order out of confusion." ANGUS CAMPBELL, 

Book-keeper to Burdett & Choate, Wholesale Commission 
Merchants, Memphis, Tenn. 

392 



KECOMMEISTDATIONS. 

" Your system of accounts is excelsior. Every man that studies it as you direct cannot 
help going into business a first-class accountant, and with a good general business know- 
ledge that it will take years to acquire by practice. Your Bank Check Book is an improve- 
ment of great value in all large houses." W. D. ELLIOTT, 

° Book-keeper to Smith, Sherwood & Co., Merchanta. 

St. Louis,' Mo. 

*' I have been thirty years a practical book-keeper, and during my practice I have never 
before met with a work which so fully explains the whole subject of accounts; in fact, it is 
the first treatise that I have seen from which a thorough practical knowledge of the science 
can be obtained." JOHN CAMPBELL, 

Merchant, 53 John Street, New 1 ork. 

" There is no other system of Book-keeping in use that so thoroughly and practically 
elucidates this part of a business education ; and your impressive and interesting lectures 
on business, commercial law, banking, &c., will be useful to me through life." 

X. Ji. A-UAJyife, 
Book-keeper for McElroy, Dickson & Co., Merchants, Pittsburgh. 



" With no previous knowledge of accounts, except your course of study, I took charge 
of the books of this extensive business, and have kept them satisfactorily for nearly eight 
vears. To obtain the best business education, I say go at once to the best college, which 
I am positive is yours." CHARLES F. WELLS, 

Book-keeper for B. L. Fahnestock & Co., Importers and 
Wholesale Druggists, Pittsburgh, Pa. 

" With no other education than I got in a common country school, your instruction in 

Book-keeping enabled me to take charge of the books of an extensive firm in Wood Street. 

and finally of the books of this department of the Railroad Company, which I have now 

kept successfully for eight years." J- K.. SMITH, 

'^ ' Book-keeper, Treasurer of the Pittsburgh, Fort Wayne 

& Chicago Railroad Co. 

*' I have tested the thorough business training I received in your excellent establish- 
ment, bv many years' successful practice in some of the largest firms in the city." 
' ^ ^ ^ ^ SIMON JOHNSTON, 

Druggist, Pittsburgh. 

" The accountant who keeps his books upon your system will have the advantage of im- 

nrovements which are not found in any other system." 

^ HARVEY M. COWAN, 

Late Book-keeper to Messrs. J. Wood well & Co., 
Hardware Merchants, Pittsburgh. 

" At the age of seventeen I graduated in your College. I have since kept books in banks 
in Springfield, Illinois, and St. Louis, Missouri, until my health compelled me to return to 
this vicinity, where I am keeping the books of this extensive firm. It is due to you to say, 
that the longer I have practised upon it, the more I am satisfied that your judiciously 
arranged and diversified course of study is superior to all others that I have seen, in pre- 
paring a young man for any branch of business." T. K. BABCOCK, 

Book-keeper to the Cambria Iron Works, Johnstown, Pa. 

" Although the books I am keeping are widely different from what I studied with you, 
yet that complete knowledge of the principles of the science which I obtained in your 
classes has enabled me to conduct every thing successfully." 

GEO. W. JACKSCN, 
Book-keeper to the N. W. Virginia R. R. Co., Grafton, Va. 
393 



I 



EECOMMENDATIONS. 

^' We have used your Book-keeping for eight years. During this time I have examined 
every other work I could hear of, but have found none so judiciously arranged and so com- 
prehensive in all that relates to an accountant's education. This fact is also attested by 
numbers who had first studied other systems and afterward graduated with us." 

T. H. POLLOCK, 

Principal Pollock's Commercial College, Chestnut Street, 

Philadelphia, Pa. 



*'I do not hesitate to say that this is the most perfect work that I ever examined on the 
suDject. rp jj TUTTLE, 

Banker, Philadelphia. 

•' Four system of accounts is in every way thorough, without any superfluous matter. 
Since leaving your Institution I have met many of your pupils who express the same opi- 

°'''°- ^ JOHN S. WILSON, 

Of Messrs. Kilgore, Wilson & Co., Merchants, Philadelphia. 

" I believe your system to be the best now taught." B. McKENNA 

Of A. Diamond & Co., Booksellers and Stationers, Philadelphia. 

" Book-keeping, as elucidated by your system, is the most thorough and complete extant, 
bmce i studied with you, I have had seven years' experience in the practice of it." 

„ , , CHAKLES FITCH, 

Book-keeper to Messrs. Allibone & Jenks, Merchants, Philadelphia. 

" I believe your course of study to be far superior to that given in Eastern cities, in this 
branch of education." B. K. JAMISON 

Book-keeper to Messrs. R. J. Ross & Co., Bankers, Philadelphia. 

" My present business brings before me nearly every system of Book-keepin- in use, and 
It IS to your admirable system of accounts, and your masterly manner of teaching it that I 
owe my qualification for effecting the intricate settlements brought into my hands bv this 
b^^°««s. JAMES FULTON, 

Adjuster of Fire Insurances, 424 Chestnut Street, Philadelphia. 

" Since graduating in your College, I have settled several sets of complicated books 
1 am now satisfied that I have mastered the science under your instruction, and recommend 
all who desire to become expert and scientific accountants, to go at once to your establish- 

^^^^- J. A. STEELE, 

Book-keeper to Messrs. Sledge & Cress, Merchants, 
Chappell Hill, Texas. 

"I shall ever regard your instruction in Book-keeping, and your impressive and interest- 
ing lectures upon business, as my most valuable preparation for my present business Your 
system of accounts can never be excelled. It prepares one for every kind of business." 

^ « R. J. BROWN, 

Of Brown & Brother, Druggists, Leavenworth City, Kansas. 

"I saj- from experience, that no one who graduates in your system of Book-keepincr as 
you teach it, will have any trouble in keeping any kind of books." 

S. M. RANKIN, 
Of Sample & Rankin, Bankers, Keokuk, Iowa. 

" I ^a/.f ? i^^ea that your course of instruction was so much a course of practice until 
I applied it m business. Your system of Book-keeping has business letters, accounts in- 
voices notes, acceptances, checks, &c., so thoroughly interwoven with the exercises in 
Jiook-keeping that I have met with nothing in business that your excellent course of train- 
mg has not fully prepared me for." JAMES H. SMITH 

Book-keeper for Smith & Baker, Wool Merchants, Newark,' Ohio 
394 



RECOMMENDATIONS. 

" I experienced no difficulty in applying your excellent instruction to immediate prac- 
tice, particularly your six-columned Journal, which proves to be a great economizer of time 
and labor, and a safeguard against error." M. S. STOKES, 

Book-keeper to Messrs. R. S. Hollins & Co., Merchants, 

Nashville, Tenn. 

" We take pleasure in testifying to the truth of Mr. Stokes' statements in regard to your 
system of Book-keeping, and fully concur with him in recommending it to the public as 
safe, accurate, and easily comprehended." R. S. HOLLINS & CO. 

" Your six-columned Journal is a model of accuracy and brevity, not likely soon to be 
improved upon ; and your method of rectifying deranged books is a most valuable ap- 
pendage to your system, that I have not seen nor heard of elsewhere." 

A. J. McClelland, 

Book-keeper, Cumberland Iron Works, Tenn. 

" I found no difficulty in applying your system to practice. Your six-column Journal 
saves a large amount of writing, and is, therefore, better adapted to my business than any 
other system of Book-keeping that I have seen." P. J. FLINDALL, 

Merchant, Trenton, Canacili West. 

" I am getting on finely with the books and the business of this firm. Success to your 
valuable Institution and to all who avail themselves of the advantages of your instruction 
from your system of Book-keeping — the best of all systems extant." 

R. C. ARMSTRONG, 

Book-keeper to Messrs. Hibbert & Son, Merchants, Louisville, Ky. 

" I advise all my friends to enter your well-organized Institution. It is certainly head- 
quarters for a thorough commercial education." WM. B. MORGAN, 

U. S. Treasury, Washington, D. C. 

" With no previous^ knowledge of accounts or business but what I learned in less than 
eight weeks under that able and systematic course of instruction for which your establish- 
ment has been so long and so justly celebrated, I have since kept books for several years 
in two mercantile establishments ; I have several times successfully rectified deranged books, 
changing the Single Entry Ledger into Double Entry, &c. Since 1861, my position in 
this Department required the greatest skill and accuracy in Book-keeping, the duties being 
more varied and chaligeable than in any other Bureau in the Department. Few of your 
graduates have had their proficiency more thoroughly tested than mine ; and I say to all 
desiring a thorough business education, by no means miss your College and your lectures 
upon business. I speak of their value from experience." 

THOS. GLEN JONES, 
U. S. Treasury Department, Washington, D. C. 

*' DuflF's Book-keeping is an excellent text-book for schools. Its teachings are very 
lucid, while it embraces many points of interest to be found in no other work on Book- 
keeping extant." J. R. WEBSTER, 

Teacher of Book-keeping, Central High School, Baltimore. 

" After a year's trial of it in my classes, I find the instruction conveyed by your Book- 
keeping is more complete and practical than any other I have used." 

JOHN SHEPHERD, 
Late Teacher of Book-keeping, Columbia College, N. Y. 



'' Having ascertained that DuflF's system of business accounts is the best in use, we have 
introduced it as a text-book in this college." JOHN K. STEWART, 

Late Professor of Book-keeping, Southern Commercial College, 

Richmond, Va. 

395 



EECOMl^IENDATIONS. 

" The crowning excellence of your system of Book-keeping is the judicious abridgment 
of all unnecessary details and repetitions, reducing the time of study to about half that re- 
quired in other Commercial Colleges. And my employer says he has never seen a person 
direct from College that went ahead with all their books so promptly and accurately as 
I ^ave." WILSON S. ROOSE, 

Book-keeper for Ignatz & Herzog, Merchants, Chicago, 111. 

" I haye had no difficulty with my books. I see now the great advantage and superiority 
of your well-arranged system of instruction in Book-keeping." 

WM. M. HORGAN, 

Book-keeper to J. B. Shay, Merchant, Chicago, 111. 

"I have already successfully tested the value of your admirable rules for settling old 
business books and opening new ones from them, and now readily subscribe to all that your 
former graduates have said of the superiority of your system of Book-keeping." 

D. C. BERGUNDTHAL, 

Book-keeper for S. W. Prather, Merchant, Wheeling, W. Va. 



use 



" I believe your system of accounts, and manner of teaching it, unequalled by any in 



R. T. KITTS, 

Book-keeper to McCullough, Morris & Co., Wholesale Grocers, 

Cincinnati, Ohio. 



"Without any previous knowledge of business books except a course of study from Duff's 
Book-keeping, I have kept the books of this extensive business for about three years. In 
my opinion, a more complete system of science and business practice has never' been 
printed." W. L. KEEPERS, 

Book-keeper, Rar -oon Iron Works, Greenupsburg, Ky. 

" Duff's system of accounts is the most perfect I have seen. It contains many improve- 
ments, abbreviations, and guards against errors which I have not seen nor heard of else- 
where." JAMES H. McCLOY, 

Book-keeper W. McClintock's Carpet Warehouse, Pittsburgh. 

" I fully concur in all that I have heard in commendation of your system of merchants' 
accounts. Many years' experience in keeping books in this and other houses, since I 
studied it, enables me to say that I consider it decidedly the best work of the kind in use." 

JAMES E. DICKSON, 
Book-keeper for Mitchell, Stevenson & Co., Iron Founders 
and Merchants, Pittsburgh. 

" This work comes to us with such high recommendations, from parties well able to judge 
of its merits, that we have no hesitation in cordially inviting attention to it as a work of 
great utility to merchants." — New York Albion. 

" Evidently the production of one thoroughly versed in the art and science of accounts, 
and artistic in his views and manner of elucidating them." — Journal of Commerce. 



" Numerous as are the publications already before the public on this important branch 
of mercantile education, we think, from the emphatic testimonials appended to the work, 
that Mr. Duff has succeeded in effecting a more ready and desirable method of teaching and 
reducing to practice this great essential in the conduct of mercantile affairs." — New York 
Evening Express^ October 30. 

396 



KECOMMENDATIONS. 

FROM THE PITTSBURGH GAZETTE. 
« Duff's BooK-KEEPiNG.-This has become the standard work upon commercial science^ 
No work yet published so thoroughly unfolds the whole subject^ ^L^^.J^ars .riva^ 
is the only work yet published in this country which exemplifies the merchants private 
Led-er,-an arrangement by which the results of the business cannot be known by the 
principal LedL ; f n arrangement which mercantile men, conductmg a large business, know 
theXe of N^ possible good can arise from a needless exposure of any man's business. 

"We have in a former number spoken of Mr. Duff's new and excellent treatise upon 
merchants' accounts, published by the Messrs. Harpers. Eve^ ^^/^^^^^^^ 
an indispensable addition to his library; and there are but few accountants so old, or so 
wise, as not to derive valuable information from it."-Eunt's Merchants' Magazine, A. 1. 

" A few weeks' study in Duff's College prepared me for ^^^^P^"?^^^^^^ "^*'°- 

sive firm I have seen no other system so complete." EDWIN Uh^DtAi, 

Sive nrm. x uavc d j Book-keeper to the Waterbury & Detroit Copper Co., 

Detroit, Mich. 

" DufF'8 Book-keeping is so much of a self-instructor, that I graduated in twenty-one 
days, and haye kept books ever since without difficulty." „^„,t ™; ^S,; n. y. 

" During mv former occupation of a teacher of Book-keeping, few persons took greater 
pains to compare different treatises upon this science, with a view to select the most thorough 
Ld comprehensive; and I state, without hesitation, that Duff's Book-keepmg will impart 
a more perfect and practical knowledge of the science, in less time with ess labor to the 
learner, and with less, trouble to the teacher, than any treatise that ^*'^,y«^^PP|*^^'* "P"" 

the subject.' General Book-keeper for B. A. Fahnestock's Son & Co., 

Wholesale Druggists, Pittsburgh. 

" My brother and a number of my young business friends having at different times been 
educated for business from Duff's Book-keeping, and they all havmg afterwards proved to 
be highly accomplished accountants and business ""f n- 1 tl^^'^f^"-* f ^^I '''Jf ^^^ ^'^""^ 
of eLLn is brought to full perfection in this work." ^^^^ J^^ES BOBB, ^_^^_^^_ 

Pittsburgh, Pa. 

" Duff's system of Merchants' Accounts exhibits in a clear, compact, and condensed form, 
without being superficial, all the essentials of a thorough ^^^^^^^^^^^^^'^^^^^^ 

Book-keeper Iron City National Bank, Pittsburgh. 

"I am recommending all my friends to your Commercial CoUe^. My cou^e of study 
from your excellent treftise on merchants' accounts, V^^V^^l^r^^or^^^^n,^^^^^^^ ^' 

this banking-house. Book-keeper to Austin, Elder & Fletcher, Bankers, 

Chambersburg, Pa. 



.' I prefer your Book-keeping and plan of instruction to any I I'^'^g'^^jj^VoN '""'=*" 
in thi/city. 'l have no trouble m keeping our book. _^^^^^ ,„ ^^H^'ILf i Co.Srchan^ 

Philadelphia. 
397 



RECOMMENDATIONS. 

" I now hold a clerkship of the first class in this deDartment T PRf^Am u « • -i 

Treasury Department, Washington, D.C. 

•moi ^ T ^r ^ ""^ n^ '°.*^^ counting-room of these extensive mills, for which I was fittpd 
ma nly by the excellent busmess education I received in your collegk I nrfuiry concur 
mall that your other numerous students have said of the superiority of your ystemT 
Book-keeping and business education/' ^ ]^^ p": HOOPER 

Clerk Salisbury Mills, Amesbury, Mass. 

"I have had charge of this bank as cashier since 1st October last and for mv abiHtv in 
discharge the duties of this responsible office you are entitled to the crpdi?^ TkIV 
months spent in your noble eduLtional establisLent st^dybg y^^^^^^ systm ^7 

accounts has been of great value to me." ^ L. W VALE 

Cashier First National Bank, Mount Pleasait, Iowa. 



398 



^ 



H^ 



DUFF'S MERCANTILE COLLEGE, 

No. 37 FIFTH STREET, PITTSBURGH, PA. 

POUNDED IN 1840, 



AND 



INCORPORATED BY THE LEGISLATURE OF PENNSYLVANIA WITH PERPETUAL CHARTER. 
THE BUSINESS MAWS FAVORITE COLLEGE FOR THE LAST 

TWENTY-SEVEN YEAES. 

It is believed to be the only institution of the kind in America founded 
and conducted by an experienced merchant. Our course of original lectures 
upon the details of -^^-.-.•■■#«#« 

^ ACTUAL BUSINESS 

are to one going into business on his own account, worth more than his 
tuition fee, and may save him thousands of dollars in experimental know- 
ledge, that will take him years to acquire in business. In these lectures 
we have no competitors, as none but an experienced merchant can impart 
the practical information which they contain. It will also be found that our 
system of accounts is, with one exception, the only modern one m use, in- 
cluding comprehensive exercises in 

BUSINESS WITH FOREIGN COUNTlRIES. 

Our system of instruction, thus extended into fields of business wholly 
omitted by others, enables us to present our students with a valuable col- 
lection of .^ .—.—-. «».»« 

BUSINESS FORMS 

in every department of inland and fbreign business. Regular lectures upon 
the 

are delivered to the classes. One of the most accomplished and ex- 
perienced teachers of Business and Ornamental 

PENMANSHIP 

is in constant attendance on the classes. 

Jfbr Terms and all other particulars, send for our Tamphlet Circular, pp^7S. 

ADDRESS 

P. DUFF & SON, 

3gg PITTSBURGH. PA. 



EXTRACTS FROM THE CHARTER 



OF 



DUFF'S MERCANTILE COLLEGE. 



The preamble of the Act, after reciting the circumstances connected with the establishment 
of the Institution by the proprietor, in 1840, proceeds :— 

"And having, through his professional labors and publications upon commercial science, 
greatly improved and enlarged the facilities for obtaining a thorough mercantile education, 
in order to give increased efficiency and permanence to his laudable efforts in promoting the 
cause of Commercial education, and thereby advancing the ends and purposes of commerce, 
it is hereby proposed that his Academy be incorporated. Therefore, 

" SECTION 1. ^e it enacted by the Senate and Mouse of Representatives of 
the Commonwealth of Pennsylvania, in Gene?'al Assembly met, and it is hereby 
enacted by the authority of the same, That there be, and hereby is erected and estab- 
lished, in the County of Allegheny, in this Commonwealth, a College for the education of 
merchants, and others, in the various branches of literature and science immediately con- 
nected with a thorough mercantile education, by the name, style, and title of 'DUFF'S 
MERCANTILE COLLEGE OF PENNSYLVANIA,' to be permanently located in the city of 
Pittsburgh, in said county of Allegheny." 

(SECTIONS 2, 3, 4, and 5 relate to the government of the College,— its liabilities, privi- 
leges, &c.) 

" SECTION 6. That the President, Professors, and Tutors for the time being, of said 
College, shall constitute the Faculty of said College, and shall have power to grant and con- 
firm such degrees in the sciences taught in the College, to such students and graduates of 
the College, and others, when, by their proficiency and learning, professional eminence, or 
other meritorious distinction, they shall become entitled thereto, as they may see fit, and to 
grant graduates, or persons on whom such degrees may be conferred, diplomas, or certificates. 

" SECTION 7. No religious sentiments shall be acwounted a disability to hinder or debar 
students from entering the College, prosecuting their studies, and receiving diplomas or cer- 
tificates, or in any manner to abridge their privileges or immunities as students in any de- 
partment of said College." 

(SECTIONS 8, 9, and 10 relate to the By-Laws, Conveyances, &c.) 
(Signed) JOHN CESSNA, Speaker of the Souse of Representatives, 
B£N«r. MATTHEWS, Speaker of the Senate, 



Approved the eleventh day of March, one thousand eight hundred and fifty-one. 

WM. F. JOHNSTON, Governor of Pennsylvania, 



Ikckctaky's SrncE. 



Pennsylvania^ ss. : 

f Ao JutXt^^ (^tviii^f that the foregoing is a true and correct copy of the original Act 
of the General Assembly, entitled, "An Act to Incorporate Duff's Mercantile College of Pennsyl- 
Taaia/' as the same remains on file in this office. 

Witness my hand and the seal of the said office at Harrisburg, this 25th day of 
April, 1851. 

A« L, BTJSSELL, Secretary of the Commonwealth, 
400 



L.S. 



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Mercantile bank and railroad 
bookkeeping. 1870. 



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